The amount of money brought in by HMRC capital gains tax (CGT) probes jumped 47% to £266m last year from £182m the year before, according to Lubbock Fine.
The number of CGT investigations closed rose 26% to 9,800, up from 7,800. Underpaid tax claimed per investigation rose to £27,142 from £23,333.
The accountancy and advisory firm said tax collectors have been targeting individuals transferring shares or other assets to a family member for CGT planning purposes.
Such transfers may crystalise a capital gain for the individual that is transferring their assets, Lubbock Fine noted.
HMRC suspects many individuals are underestimating the size and quantity of their disposals in order to reduce their CGT.
Changes to Business Property Relief (BPR) on inheritance tax (IHT) are expected to increase the extra tax collected from CGT investigations further, Lubbock Fine noted.
HMRC has also been probing cryptocurrency investors and amateur ‘day traders’ with CGT investigations.
See also: CGT speculation risks driving ‘unnecessary decisions’
Lubbock Fine’s Graham Caddock said: “With IHT planning around business assets becoming more common, HMRC is doing everything it can to ensure it collects every penny it can from those trying to reduce their CGT and IHT bills.
“Families are increasingly finding that passing on wealth is no longer a straightforward exercise. HMRC is scrutinising these transactions far more aggressively, not just for unpaid tax but it is increasingly challenging how assets are valued in the first place.”
“Anyone disposing of assets or carrying out IHT planning needs to ensure valuations are accurate and gains are properly disclosed” he added.
“Mistakes or omissions that may once have gone unnoticed are now far more likely to result in an investigation by HMRC and potentially significant penalties.”
