Tax Investigation – Personal Clients

HMRC has never been more focused or organised in its pursuit of additional income from tax investigations. During 2013/14, £9.2bn was collected in extra tax from compliance work, including £286m from the UK’s wealthiest individuals.


  • £845m was collected in 2013/14 from self-assessment enquiries, up from £609m the year before.
  • £137.2m from the Affluent Unit, which concentrates on people with a net worth of between £1m – £20m.
  • £286m from the High Net Worth Unit, where 400 staff target individuals with a net worth in excess of £20m.

HMRC continue to launch further campaigns focussing on areas such as solicitors, credit card sales, second incomes and let properties, with yet more activity planned for 2015/16.

These figures demonstrate that HMRC is pursuing investigations across the board, from large business and wealthy individuals through to buy to let landlords not declaring their Capital Gains tax liabilities.

 For more information on Tax Investigations and HMRC activity click here.

To protect our clients, we offer a Tax Investigations Service. The Service covers the representation costs incurred when dealing with certain HMRC enquiries and ensures that if you are selected we will protect you and resolve the situation within the shortest possible timeframe.

We strongly recommend that you subscribe to this valuable service.


What a relief!

 HMRC began an enquiry into an individual’s personal tax return, challenging the client’s capital gains tax position following the disposal of a third share of a farm. HMRC requested a huge amount of information from the client, including completion statements from the solicitor, the name and address of the purchaser, details of how the property was used throughout the period of the client’s ownership, copies of any professional valuation reports and finally, basis and specification legislation where Entrepreneurs Relief was being claimed.

The client collected all the necessary documents, which were presented to the inspector with the relevant calculations and technical explanations including the basis for specific statutory reliefs claimed. After wading through the information, the Inspector came back a few months later, stating that HMRC would not be making any amendments to the return and issuing a closure notice.

Although the client had no additional tax to pay HMRC, the total bill for the professional fees reached nearly £2,000.

Case Notes

 This case was particularly stressful for the client in question. We would much rather help clients to plan for the future, whether that is for their business or their personal financial needs. We recommend that all clients to subscribe to our Tax Investigations Service to ensure that in cases like these, the £2,000 in professional fees doesn’t end up adding insult to injury!

The risk of an HMRC enquiry is a reality. Subscribe today and have peace of mind that if you are targeted by HMRC you are protected against the professional costs involved.

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