On Tuesday 28 April, ICAI attended the launch of the HMRC High Net Worth Unit. The new unit has been created to be responsible for a small number of the wealthiest taxpayers with complex tax affairs.

It is understood that there will not be a monetary cut-off, but that the top 5,000 wealthiest people in the UK will be included. It was acknowledged that the inclusion of individuals would not be an exact science. Individuals outside the 5,000 but with growing wealth (so that they will be in the 5,000 in the future) may be included. In addition to the individuals themselves, the new unit may consider the extended family.

The passing of wealth to the next generation got particular mention at the launch. The new unit means that the same team, with the same people will deal with all issues of the High Net Worth Individuals.

The aim of HMRC is to:

• Build relationships to help them better understand these taxpayers and their requirements, and “make it easier for them to get things right”
• Better tailor service delivery for these taxpayers by providing a single point of contact and a much more “holistic” approach to their tax affairs.

This development has arisen from the OECD project on High Net Worth Individuals (HNWIs) which took place in late 2008 to early this year. The discussion paper on that project had considered such concepts as co-operative compliance and the creation of a framework to encourage high net worth individuals and their advisors to volunteer relevant information.