HMRC puts 200 billionaires on UK tax crackdown hitlist
The UK's tax authority is assigning dedicated compliance managers to more than 200 billionaires as part of a crackdown aimed at raising £500m for the public purse.
HM Revenue and Customs (HMRC) said it had for the first time compiled a list of billionaires required to pay tax in the UK, regardless of whether they formally reside in the country. The move targets a "wealthy tax gap" caused by those not paying what they owe.
Each billionaire with a UK tax footprint will be assigned a customer compliance manager (CCM) to help navigate their complex affairs, which often span multiple taxes, entities and jurisdictions.
Billionaires can present a particular example of this, with affairs often spanning multiple taxes, entities and jurisdictions and a greater need for early and coordinated engagement.
Technology Deployment
The authority also plans to deploy new technology to monitor wealthy individuals—defined as those with income of more than £200,000 or assets over £2m in any of the last three years. This will involve "advanced analytics, automated triggers and artificial intelligence (AI) to identify emerging risks earlier".
The wealthy tax gap for 2024-25 was estimated at £3.6bn, equivalent to 6% of the total tax gap across the UK's entire tax-paying population. HMRC's actions are expected to contribute at least £500m towards a larger commitment to raise £10bn in additional tax revenues by 2030.
Expert Warning
Adam Craggs, head of tax at RPC, warned that anyone with more than £200,000 of annual income or net assets above £2m should "reflect on how clearly they understand and can evidence their UK tax position". HMRC was previously criticized by MPs for its lack of understanding of tax compliance by about 1.3 million wealthy taxpayers.
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