HMRC declares clampdown on tax cheats

Individuals who regularly transfer money overseas in a bid to avoid paying taxes and duties have been warned that investigators will be targeting such behaviour.

Specialists from HM Revenue & Customs (HMRC) announced today that a 200-strong team will be cracking down on tax cheats with property abroad.

Exchequer secretary to the treasury David Gauke explained how £917 million has been allocated to HMRC in a bid to reduce the tax gap over the next four years.

He explained this was assigned during the last Spending Review and the new team of investigators is aiming to help with the task.

Work on identifying tax cheats began in October, with experts looking at new and innovative risk assessment techniques for how to identify areas where wealthy individuals are duping the system.

"The Government is committed to tackling tax evasion and avoidance across all areas of the economy," Mr Gauke stated.

Individuals with large fortunes are the first to be investigated to ensure their ownership of land and property overseas is all above board.

A list of people who have homes abroad has been made available to HMRC through publicly accessible information and will help the team highlight those who appear not to be able to legitimately own such abodes.

Brits who fail to declare the correct income and gains from their overseas properties will also be targeted.

"With HMRC's increased capability and expertise - and its increasing success in tackling evasion both at home and offshore, the message is clear: there is no hiding place for tax cheats," Mr Gauke warned.

The news comes after managing director of Yvonne Goodwin Wealth Management Yvonne Goodwin explained individuals looking to send money to offshore accounts need to ensure they declare their gross interest on tax returns in order to avoid falling foul of HMRC.

Posted by Thomas Smith

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