National Audit Office Say Britain Must Identify Best Ways of Taxing The Wealthiest

(qlmbusinessnews.com via bloomberg.com – – Tue, 1 Nov, 2016) London, Uk – –

Wealthy homes
jan buchholtz/flickr.com

A unit set up to claim unpaid tax from the richest people in Britain raised 416 million pounds ($510 million) in the past financial year but must do more to improve its enforcement activities, the National Audit Office said.

By concentrating on the 6,500 taxpayers with assets of more than 20 million pounds, Her Majesty’s Revenue and Customs High Net Worth Unit exceeded its 2015-16 target of 250 million pounds, the NAO said in a report published in London on Tuesday. To raise more revenue, it must identify what techniques have worked best since it was set up in 2009, the spending watchdog said.

“The tax affairs of the wealthiest in society are complex, making it harder for HMRC to ensure that they are paying the right amount of tax,” NAO head Amyas Morse said in an e-mailed statement. “While the yields from HMRC’s work in this area have increased, it needs to evaluate what approaches are the most effective.”

Individuals with wealth of more than 20 million pounds contributed 4.3 billion pounds in tax in 2014-15 and formal investigations are being carried out into the liabilities of more than 2,000 of them, the NAO said. An initial estimate suggests 1.9 billion pounds in unpaid tax over a number of years may be due as a result of the probes, of which avoidance schemes account for 1.1 billion pounds.
The definition of “high net worth” has been extended to include people with assets of more than 10 million pounds for the financial year that started in April, extending the reach of the unit, which has a staff of 380, to include a further 1,000 taxpayers, the NAO said.

In a move uncommon elsewhere in the world, the U.K. assigns one of 40 “customer relationship managers” to each wealthy individual and they “are responsible for understanding the risks and behaviors of the people assigned to them,” usually through working with their representatives, the audit office said.

By Thomas Penny