HMRC has issued updated guidance on how it deals with high net worth individuals.

HMRC’s High Net Worth Unit (HNWU) was set up in 2009 and guidance was issued at the time. Since then HMRC has developed specialist teams in the HNWU, which aim to give the unit a better understanding of different taxpayers.

The new guidance lists the specialist teams:

• Finance team – focuses on individuals connected to the finance sector. For example, hedge funds, private equity and banking entities.
• Rising Stars team – deals with people who have rapidly increasing wealth, indicating that they will meet the HNWU’s wealth criteria in the next few years.
• Business Investment Tax Relief team – handles claims for business investment tax relief from individuals not living in the UK who propose to invest in UK businesses. Not all requests are approved as some do not meet the required criteria.
• Analysis and Intelligence Unit – focuses on using data and analysis to understand the behaviour and financial structures of wealthy individuals, and where their interests lie.
• Dispute Resolution team – works to resolve disputes between HMRC and wealthy individuals in line with HMRC’s litigation and settlements strategy.