HM Revenue and Customs (HMRC) has strengthened its efforts to oversee the tax affairs of overseas billionaires with holdings in the UK by assigning dedicated tax compliance managers to monitor them closely. These ultra-wealthy individuals, alongside their accountants, have received letters informing them that specialists will be appointed to ensure they fully meet their personal tax obligations.
Last year, the Parliamentary Public Accounts Committee (PAC) expressed disappointment that HMRC had not utilised the extensive data available to provide transparency regarding the tax contributions of the wealthiest individuals. In response, HMRC agents will now focus on three main areas when reviewing billionaires’ financial affairs: their business relationships, their involvement with trusts, and their overall financial situation both within the UK and internationally.
Commenting on the process, Charlie Sosna, head of private wealth and tax at Mishcon de Reya, observed with some humour that the correspondence seemed to be “requesting all information up to inside trouser leg measurements.” He also noted that clients are cautious, aware that once HMRC begins investigating, inquiries tend to deepen.
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Aidan Grant, partner at Collyer Bristow, emphasised the importance for wealthy individuals to proactively seek expert tax advice concerning their UK matters, especially in light of heightened scrutiny.
This development coincides with reports that hedge fund billionaire Chris Rokos is preparing to leave the UK, planning to relocate his residency to Greece and open an office in Athens. He is among several high-profile billionaires who have recently exited the country.
An HMRC spokesperson stated: “We want to help all customers get their tax right, including the UK’s wealthiest people. We’ve had dedicated customer compliance managers for wealthy individuals for several years, allowing us to identify and address tax risks effectively.”