UK taxes set for scrutiny

Closer scrutiny of UK taxpayers looks set to be introduced this year, in a move designed to crackdown on non-domiciled claims.

HM Revenue and Customs (HMRC) is planning to toughen up its approach to taxpayers who live in the UK but deny it is their main country of residence, by adding new questions to the self assessment tax returns.

The move is likely to see an increase in workload for solicitors in Great Britain and Northern Ireland, as people look to find ways of reducing their liability to pay levies such as inheritance tax and income tax.

At present, UK residents who claim to be non-domiciled in the country can avoid paying inheritance tax, income tax and capital gains tax - even if they have lived in the country for years.

However, the new questions are designed to discover whether such claims are legitimate.

"Until now, non-domiciled people simply had to confirm that this was their status. Now the HMRC will challenge them," Angela Beech, tax partner at Blick Rothenberg, explained to Reuters.

Contact us for legal advice