Kangs Solicitors have been instructed by a client who is being investigated by HMRC in respect of a number of alleged discrepancies in self –assessment tax returns submitted by her.
The Basis of the Investigation | Kangs Solicitors Tax Team
Over a period of time our client had invested in a number of properties in London which she has now sold, resulting in a tax liability.
HMRC are claiming that tax is owed as a result of wrongly claimed Private Residence Relief (PRR).
What Is PRR? | Kangs Property Tax Advisory Solicitors
PRR is relief that is available from liability to Capital Gains Tax upon the sale of the main home, or principal private residence, of the tax payer and in order to attract such relief certain criteria must be met such as:
- there is only one main home which has been occupied since acquisition.
- the property has not been let out in part – this does not include having a single lodger.
- part of the property has not been used for business purposes only.
- the grounds of the property, including buildings, extend to less than 5,000 square metres.
- the property was not purchased for the sole intent of financial gain.
Solicitor or Accountant? | Kangs Tax Offence Advisory Solicitors
If you are considering contacting an accountant or a solicitor regarding any HMRC Investigation, we would advise you to instruct a solicitor initially.
All information provided to a solicitor by a client is protected by ‘legal professional privilege’, thereby ensuring privacy in confidential discussions.
Detail provided to an accountant does not enjoy such privilege.
However, an accountant is more suitably qualified to advise upon the actual financial assessment of any tax potentially due and we would seek to instruct one of the specialist accountants with whom we have established trusted working relationships on your behalf, where appropriate.
How Can We Help? | Kangs Solicitors
Having discussed the circumstances with our client in considerable detail and examined the relevant documents we will discuss the alleged irregularities with HMRC with a view to resolving the issue without the need for court proceedings.
Who Should I Call For Assistance? | Kangs Tax Disputes Solicitors
Our specialist team of tax solicitors can be contacted through any of the following who will be more than happy to assist you.