HMRC High Net Worth 'Rising Stars' Unit

HMRC’s specialist ‘Rising Stars’ unit which focuses on tackling tax avoidance amongst those with rising wealth has recovered £11.2m since it was launched in 2012.

The specialist unit has focused on individuals with rapidly rising wealth, such as young sport stars, celebrities, entrepreneurs and even professionals in financial and investment organisations, whose colleagues may also fall onto HMRC’s radar if they fit a similar profile.

The criteria of those ‘Rising Stars’ who may fall under the spotlight includes those with a net wealth of £15m and who are likely to increase this to £20m in the next five years, meaning that they fall into the criteria for HMRC’s high net worth unit, according to reports from an international law firm.

HMRC considers there to be 6,200 high net worth individuals who contribute between £3bn and £4bn to the economy in tax.

It has been putting in place new specialist units and developing new systems in order to clampdown on tax avoidance. New technology allows HMRC to identify potential targets through data from financial institutions, local authorities and social media.

With more serious and sophisticated tax avoidance mostly associated with wealthier individuals, HMRC continues to make moves to target such individuals. The 35% increase in recovered unpaid tax by the Rising Stars unit in 2013-14 compared to the previous year shows that HMRC is making headway.

Recent announcements from HMRC confirming that it plans to close disclosure facilities earlier than planned at the end of 2015 means that the time to make a voluntary disclosure is now, rather than risking increased penalties if HMRC opens a full tax investigation.

If you would like to discuss your circumstances in complete confidence with one of our trusted and experienced tax investigations professionals, you can call us on 0113 387 5670 or fill out an Enquiry Form and we’ll contact you straight away.