HMRC has revealed that its newly formed 'Affluent Unit' will target wealthy Britons who own property or land abroad. A 200 strong team of investigators and specialists have been given the task of identifying those individuals with property overseas who have been evading the required taxes and duties.
Holiday home owners are likely to be the first to be scrutinised, the unit will then turn its attention to UK based commodity traders and then people who hold offshore bank accounts. The establishment of the team was announced last month by Danny Alexander who is chief secretary to the Treasury. Its primary focus will be on individuals who earn up to £20m and sophisticated 'data mining' techniques will be used to uncover information. It will ensure that any tax due is being paid - this might include someone who is renting out their villa in Spain or someone who owns a piece of land abroad and it is being used for a commercial business. HMRC's risk assessment tools will then highlight those people who appear to be unable to afford such a property as well as those who are not declaring any rental income and /or gains.
Individuals should be prepared to be able to prove to HMRC that they have not been receiving any rental income and also to be able to demonstrate that they had the financial means to purchase and maintain an overseas property out of their usual declared sources.
