In conversation with: Charlotte Thorpe

Transcript

Charlotte Thorpe: My name is Charlotte Thorpe and I'm a senior manager, specialising in tax disputes and tax governance at PwC.

HMRC are issuing nudge letters to tax payers who made a claim for business asset disposal relief on their 2021 tax returns and who they believe may have exceeded the lifetime allowance of £1 million.

Business asset disposal relief was formerly known as entrepreneurs relief and, in March 2020, the lifetime allowance was reduced from £10 million to £1 million.

If you receive one of these letters from HMRC, you should seek advice to review the claims you have made on your 2021 and earlier tax returns, to establish if you may have exceeded this lifetime allowance and to understand what response to HMRC is required.

These letters often have short time frames for a response and it's important that they are not ignored, even if you do think that your tax position is correct.

If you've received one of these letters or if you would like to have a general conversation about your tax affairs, please contact me directly or your usual PwC contact.