Tax Investigation - LONG post

Jean_C_2

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Arthur22_2

I'm sorry to hear about this - please try not to stress too much. I can't help with the details I'm afraid, but I do know that the bank statements should be pretty easy to solve - I needed some back bank statements and I just phoned up the bank and for a £10 fee they sent me as many as I would like. I'm sure your bank will have records relating to 04/05, so that really shouldn't be a problem.

magic_pants

Can't help with much but what I would say is stop worrying about going to prison! If HMRC imprisoned everyone who filed an incorrect tax return there'd be a prison on every street corner!

I should add that a few years ago I was in a similar boat and stressing terribly about being locked up for not paying some tax etc.. and my accountant nearly fell off his chair laughing when I told him. Honestly, if the worst comes to the worst you'll simply owe back tax with some interest and penalties...it's not going to be prison!

Cook_County

From what you have said you/your mother have some quite valuable assets.

It is not at all clear:
a) which of you purchased each
b) if these are held as tenants in common/joint tenancy
c) If you made gifts of either the income or underlying shares of ownership in any of the properties at any points
d) who the beneficial owners are of each property and whether this is written down anywhere

In addition you seem to be building up a substantial IHT bill because your mother either owns or derives benefit from all of the properties. Given that she is the older it would unusual from an IHT planning perspective for the structure to exist as it does.

HMRC frequently ask for paperwork that they are not entitled to see. You need:
1. Advice from an investigations specialist (probably not your existing accountant)
2. To speak with your solicitor about the structures in place, including ownership and beneficial ownership and updating your Wills (with the new addition in mind)
3. In the meantime to tell your accountant to tell HMRC about your condition and say that as a result it will take 90 days to respond.

Jean_C_2

Edited to remove details