Government announces crackdown on tax avoidance by those worth more than £1 million
Anyone with assets of £1 million or more will be investigated
September 25, 2012
All households with assets worth at least £1 million will be investigated to see if they are paying enough tax. The Treasury Secretary, Danny Alexander, has announced the augmentation of the Treasury’s “Affluence Unit” which will have the power to analyse the records of wealthy tax payers. If necessary this unit will be able to knock on people’s doors and demand they account for every aspect of their financial lives. Initially the Affluence Unit was set up to investigate those worth more than £2.5 million. It is now receiving more funding and its staff has increased to 300, to widen the net.
This crackdown will affect up to 500,000 people, the vast majority of whom live in London and the South East. Mr Alexander said: “We will use IT software to look across files and records and work out features in someone’s affairs that suggest there’s avoidance going on. They will look at anomalies and sniff out any problems.”