Correcting property-related discrepancies

Transparency often shines a light on areas of the tax system to which HMRC advisers and taxpayers should pay more attention. The rapid enactment of the Economic Crime (Transparency and Enforcement) Act 2022 (ECTEA 2022) contained complex measures intended to enhance transparency of ownership of UK land and buildings (property). This is intended to be the torch from which a light will be shone on overseas corporates owning property when those corporates’ details are registered with the Companies House register of overseas entities (ROE).

Unsurprisingly HMRC has said it intends to launch a new campaign in relation to overseas corporates owning UK property to prompt them to disclose undeclared UK taxes (tinyurl.com/offshorecampaign).

This article considers the data available to HMRC how it will identify cases for nudge letters and investigations together with options and points for consideration by those who need to correct...