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HMRC publish briefing on HNWIs

printer Mail

HMRC has published a briefing in its corporate report series titled How to deal with high net worth individuals (HNWIs), which explains how the department’s specialist HNWI unit ensures those with a net worth of £20m or more meet their tax obligations.

The group of HNWIs, totalling approximately 6,200 individuals, contribute £3–4bn in income tax and CGT each year. Each individual has a customer relationship manager who is, in turn, supported by a series of specialist teams dealing with responsibility for particular parts of the law. The HNWI unit has a number of specialist teams including, for example:

  • finance team, focusing on individuals connected to the finance sector;
  • rising stars team, for people who have rapidly increasing wealth, indicating that they will meet the HNWU’s wealth criteria in the next few years;
  • business investment tax relief team, handling claims for such relief from individuals not living in the UK who propose to invest in UK businesses;
  • the analysis and intelligence unit, focusing on using data and analysis to ensure that HMRC understands the behaviour and financial structures of wealthy individuals, and where their interests lie; and
  • the dispute resolution team, working to resolve disputes with wealthy individuals in line with the department’s litigation and settlements strategy.

HMRC says this combined approach allows it to take a risk-based, targeted approach to countering avoidance arrangements.