A CLAMPDOWN on tax avoidance will help the UK government raise an extra £500m. a year, according to yesterday’s Budget.

Anyone caught deliberately concealing offshore income risks a penalty of up to 200% of the unpaid tax.

However, local tax experts said Guernsey has little to fear from the move and Ernst & Young partner Graham Parrott said this Budget was the best the island could have hoped for.

‘As an island we don’t want to encourage people to evade tax here,’ he said.

‘I do make my living out of legitimate tax planning, but it is no good for anyone for people to be hiding their money.’

He said the budget had few surprises.

‘Brown couldn’t be seen to be giving too much away right now,’ he said.

‘This is likely to be his last budget and he did the best he could.’

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