The following Personal Tax guidance note by Tolley in association with Emma Broadbent of Grant Thornton provides comprehensive and up to date tax information covering:
HMRC established its High Net Worth Unit (HNWU) in 2009 to deal with the personal tax affairs of the UK’s wealthiest taxpayers.
The aim of the unit is to obtain a deeper understanding of the affairs of taxpayers within this population. Each taxpayer dealt with by the unit is assigned a Customer Relationship Manager (CRM), who acts as a point of contact for tax agents and taxpayers, enabling informal real time discussions with HMRC about areas of tax risk and uncertainty.
These conversations can be mutually beneficial as they decrease the risk of misunderstandings and therefore the need for formal enquiries and can provide some level of certainty for taxpayers when potentially tax-sensitive transactions take place.
The HNWU deals with taxpayers with a worldwide wealth of around £20 million or above and with complex tax affairs. This group initially represented the top 5,000 taxpayers in the UK. There will, however, be individuals within the UK who have complex tax affairs or assets in the millions that do not fall within the HNWU.
In late 2011, HMRC announced the intention to broaden its focus with the formation of its Affluent Team. This team was created to deal with the affairs of taxpayers with assets in the region of £2 million to £20 million, representing around 350,000 of the UK’s wealthiest taxpayers. In September 2012 it was announced that the newly retitled Affluent Unit will be expanded to deal with taxpayers with a net worth of at least £1 million. An additional 100 Officers will be recruited (representing a 50% increase in the size of the unit) to deal with the affairs of taxpayers falling within the extended coverage.
Unlike the HNWU, where the emphasis is on building long term relationships with taxpayers, the creation and development of the Affluent Unit is part of HMRC’s drive to ensure
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login