Crown dependency measures fail target

UK government efforts to raise a billion pounds a year from tax-dodgers who hide their money in the Isle of Man, Jersey and Guernsey will only raise just over a quarter of that figure.

The UK’s Office for Budget Responsibility says the 2013 budget saw an amnesty announced, where people could come forward and admit their unpaid tax on money in the Crown dependencies.

Last November, the OBR said the £1 billion target wouldn’t be reached, and it expected the measure would raise just £800 million.

But in its latest report presented to parliament by Economic Secretary to the Treasury Harriet Baldwin, the OBR says it now expects the measure to raise just £270 million.

The disclosure facility closed in December and HMRC says far fewer people came forward than expected.

In its report, the OBR says publicity campaigns were less effective than expected and HMRC doesn’t have enough time to enforce the facility properly.