ARTICLE · 09 OCTOBER 2024

UK Revenue Is Targeting Persons With Significant Control

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HMRC's Wealthy Unit is sending "nudge" letters to UK Persons with Significant Control (PSCs) who haven't filed tax returns or may have undeclared income. Targeting individuals with over £2 million in assets, HMRC urges tax compliance, warning of potential penalties and investigations for non-compliance.

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The UK revenue authority's (HMRC) Wealthy Unit is in the process of sending 'nudge' letters to Persons with Significant Control (PSCs) who have not filed a tax return or may not have declared all their income.

The Wealthy Unit is responsible for scrutinising the affairs of around about 700,000 UK residents who have net asset wealth of more than £2 million or whose income has exceeded £200,000 in the last three years.

A PSC is defined as someone who either holds more than 25% of shares or voting rights in a company, has the right to employ or remove most of the board of directors, or has significant influence or control in a company.

The PSC rules require a company to identify all the people who can control it, and to report this information to Companies House. HMRC has reviewed this information and is now writing to those PSCs that it thinks may need to take action.

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