Crackdown on foreign property tax avoidance

Posted: 7th November 2011

Beach2HM Revenue and Customs (HMRC) have established a new team of investigators and specialists in order to identify wealthy tax avoiders.
One of the first targets of the 200-strong ‘Affluent Team’ is wealthy individuals who own land and property abroad. HMRC is applying sophisticated data mining techniques to make publicly available information in order to identify individuals who own property abroad. Risk assessment tools will then be used to highlight those who do not appear able legitimately to afford the property, as well as those who do not appear to be declaring the correct income and gains from the property.
The Affluent Team will also focus on commodity traders and people holding offshore accounts. It will work in co-ordination with existing units from across HMRC, including those that deal with corporate entities, residence and domicile issues, and trusts and estates.