HMRC is writing to the UK residents named in the files of 14 offshore financial service providers. These providers specialise in companies, trusts, and foundations in low, or no tax, jurisdictions.

The letters, which started going out on Monday 5 June, warn recipients to report all their overseas income or gains that they owe UK tax on, or face penalties of up to 200% of any tax due and even prosecution.

During 2021 and 2022, the International Consortium of Investigative Journalists (ICIJ) released more than 11 million records from 14 offshore service providers, referred to as the Pandora Papers.