HMRC continue to become aware of taxpayers who may be in receipt of income/gains from overseas assets via automatic exchange of information with other countries. This has led to a significant increase in the number of people receiving 'nudge' letters from HMRC which may require taxpayers to make full disclosure or potentially face more severe action.
As outlined in earlier blogs our private client team specialise in overseas matters, with a client base consisting of non-domiciled taxpayers and expats claiming the remittance basis of taxation and clients with overseas assets.
We help our clients report their income and gains correctly with reference to UK tax law and in recent years we have also been undertaking a large amount of work helping new clients regularise their UK tax affairs, often because they have been prompted by an HMRC ‘nudge’ letter they have received. These nudge letters are prompted by information shared with HMRC by overseas institutions as a result of agreements entered into as part of an international network of Automatic Exchange of Information agreements, Common Reporting Standards and FATCA.
It has been reported in the Financial Times:
“HMRC sent 31% more "nudge" letters to holders of overseas assets in 2022/23, with 23,936 letters relating to offshore matters distributed in the period amid a crackdown on tax avoidance.“
We can provide a service of reviewing a taxpayers overseas income, gains and assets to determine if a disclosure is required and depending on our findings we can assist in making that disclosure or responding to HMRC’s nudge letter on their behalf.
If you receive one of these letters and require assistance please contact us for an initial consultation.