By Steven Pinhey, Tax Director
HM Revenue & Customs (HMRC) High Net Worth Unit (HNWU) was created to handle the tax affairs of the country’s wealthiest people. Its intention is to engage proactively with the taxpayer and their agent to better understand the taxpayer’s tax affairs and tax risks associated with the taxpayer.
The criteria for entry into the HNWU was reduced last year from individuals with assets of over £20m to those with an overall wealth of £10m or above. Steven Pinhey, our Tax Disputes and Resolutions director, considers that this reduction in the entry requirement and more individuals joining the NHWU will result in them being more likely to have their tax affairs scrutinised.
Any steps taken by HMRC to better understand taxpayers affairs should be applauded and we at Lubbock Fine are committed to assisting HMRC in this regard.
However, the increase in information flows from both within UK organisations and from overseas jurisdictions together with the general erosion of taxpayer safeguards and increase in HMRC’s powers and penalties regimes mean that these taxpayers more than ever need greater professional guidance and Revenue certainty in the handling of their affairs. Taxpayers need to have someone with the knowledge to ensure that the legislation will be applied consistently and appropriately to the facts of their case.
If you have been transferred to HMRCs HNWU and would like to discuss how this transfer may impact on the handling of your tax affairs going forward, please feel free to give Steven Pinhey a call on 020 7490 7766 or email him on firstname.lastname@example.org.