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HMRC’s compliance office dedicated to the tax affairs of the country’s best-off people has passed a major landmark in its five-year history.
The high net worth (HNW) unit has collected more than £1bn in additional tax revenue since being formed in 2009, with £268m retrieved in 2013/14, according to a new Revenue report, which show a rise on the previous year’s £222m.
HMRC’s compliance office dedicated to the tax affairs of the country’s best-off people has passed a major landmark in its five-year history.
The high net worth (HNW) unit has collected more than £1bn in additional tax revenue since being formed in 2009, with £268m retrieved in 2013/14, according to a new Revenue report, which show a rise on the previous year’s £222m.
The document, How We Deal with Wealthy Individuals, explains how the 6,200 richest taxpayers in the UK – those with a net worth of £20m or more – collectively pay £3bn to £4bn a year in personal income and capital gains tax.
It also notes that more very rich people now file their tax returns on time and predicts that the proportion of outstanding returns will fall from 11.9% to 3.4% within the next five years.
The HSW unit comprises a number of teams, each of which has a different focus:
- individuals connected to the finance sector, including hedge funds, private equity and banking entities;
- people with rapidly increasing wealth, suggesting they will meet the unit’s wealth criteria in the next few years;
- claims for business investment tax relief from individuals not living in the UK, who propose to invest in UK businesses;
- use of data and analysis to ensure HMRC understand the behaviour and financial structures of wealthy individuals, and where their interests lie; and
- settling disputes between the Revenue and rich taxpayers in line with the department’s litigation and settlements strategy.
