Billionaires push back over UK tax managers keeping tabs on their money

Billionaire taxpayers in the UK are objecting to stringent information requests from HM Revenue and Customs (HMRC) aimed at mapping out their wealth and financial structures. Letters from HMRC, sent to all UK-based billionaires this summer, appoint a Customer Compliance Manager for each, requesting in-depth details on assets, investments, and financial structures. The tax authority claims its definition of UK billionaires has been expanded to include those using offshore structures or property.

Tax advisers and other experts to the wealthy argue the requests are unlawful and costly to comply with, citing a lack of statutory authority for such information. One billionaire financial trader, Alexander Gurko, wrote on LinkedIn that his Tax Compliance Manager wants every piece of information. Tax barrister Daniel Feingold stated that clients should not communicate directly with HMRC, but through their agents.

Nick Skerrett, a partner at Resolution Tax, emphasized the need to balance the requests with what is legally permissible, useful, and not an overextension.

HMRC has promised a "more joined-up and direct service" to billionaires, fewer repeated information requests, and discussions centered on genuine uncertainty or risk. However, tax specialists warn that certain information sought, such as business succession plans, goes beyond HMRC's authority. Christopher Groves, a partner at Withers LLP, stated that some clients are seeking legal advice on whether they are legally obligated to provide all requested information.

The tax authority seeks comprehensive details on property, trusts, company assets, and other income and gain sources, along with their structure. Former HMRC executive, Edward Troup, suggested that full disclosure of income arrangements and gains is expected, with non-compliance potentially leading to further inquiries.