HMRC have recently issued “nudge” letters to individuals advising that HMRC has received information regarding the offshore assets held by the person through CRS automatic exchange. The letter notes that the information received has been compared to the person’s tax returns, resulting in an apparent inconsistency. There could be a reasonable explanation for any such inconsistency and for many recipients the response to HMRC may simply be to provide an explanation.

The letters include a ‘certificate of tax position’ which the recipient of the letter is asked to sign and return. It is recommended that any person receiving such a letter from HMRC speak to their tax agent and/or obtain tax advice before signing the certificate.

If you have any queries regarding the latest letters issued by HMRC, please speak to your usual KPMG or contact me.