Only a small number of the 20,000 UK residents thought to be concealing income in offshore accounts are expected to disclose this money when a deadline set by the UK government falls due today, according to the Daily Telegraph newspaper, citing an accountancy firm.

Governments around the world have been using tax amnesties as a way to encourage residents to come clean about their offshore accounts. Cash-strapped governments, many of them coping with massive budget shortfalls, have targeted offshore financial centres as a source of funds.

Richard Mannion, national tax director at accountants Smith & Williamson, was quoted as saying: "We have seen the usual smattering of people owning up. It's human nature. Although it's a good opportunity to come clean, people don't avail themselves of the opportunity."

HM Revenue & Customs, the UK tax authority, could not be contacted by WealthBriefing at the time of going to press.

The UK government’s tax amnesty, which runs until midnight Monday, limits fines to 10 per cent of any unpaid tax on income transferred into the accounts in the past 20 years. After 4 January, fines increase to at least 30 per cent and can hit 100 per cent of the tax due. HM Revenue & Customs has said it will prosecute the most serious cases.

The disclosure amnesty is the second one issued by HMRC in recent years. The first in 2007 for offshore accounts set up by the five largest high-street banks raised £400 million from around 45,000 people.