We understand that HMRC contacted taxpayers who avail of the remittance basis, as identified on their 2011–12 tax returns. Agents were apparently not copied in on the correspondence.

HMRC maintain that the correspondence is “educational” in nature. It seems however that there are concerns that some remittances are being left off returns. A series of examples of transactions which constitute a remittance is being provided in the letter, covering areas such as money transfers, asset transfers, purchase of services and offshore loans and gifts.

Per the advice we received from HMRC these letters were initially sent to customers who are taxed on the remittance basis and who are liable to pay the remittance basis charge. They aim to contact other remittance basis users later in the year.