New UK Tax Team Takes Aim At Wealthy

Nick Parmee 16 January 2009

New UK Tax Team Takes Aim At Wealthy

The UK tax authority HMRC is creating a new HNW unit to deal with the wealthiest individual taxpayers. This move comes at a time of intensifying government focus on the tax affairs of the wealthy in the UK and in offshore locations.

A spokesman told WealthBriefing that the new unit is being established so that HMRC can deal more effectively and efficiently with this group and with an integrated and consistent approach. He said: “Essentially, we want to make it easier for taxpayers to get things right.”

All taxpayers and agents affected by this restructuring will be contacted direct to let them know about the new arrangements.

The work in the new unit will involve new structures and a “particular emphasis on developing a better understanding of this group, both individually and collectively - developing relationships with their agents, predicting activity and influencing behaviours in accordance with wider HMRC strategy.”

The UK government is currently reviewing the country's relations with offshore UK dependencies such as the Isle of Man and The Channel Islands, following controversy last year about whether UK citizens who deposit money in such low-tax jurisdictions are entitled to UK public aid in tthe event of a bank failure.

And last year the UK also introduced an annual £30,000 charge on non-domiciled residents. The latter measure prompted some on the wealth management industry to warn of a potential exodus of wealthy people from the UK.

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