2,000 new tax inspectors in pursuit of HNWIs

Article provided by Ed Emerson

28 September 2011

By Gavin Stamp Political reporter, BBC News 

More than 2,000 tax inspectors will be recruited to crack down on tax evasion among the wealthiest people in the UK, a Liberal Democrat minister has said.  

Danny Alexander, Chief Secretary to the Treasury, told the Lib Dem conference that this would ensure 350,000 top earners paid their "fair share" of tax.  

Efforts to raise an extra £7bn by 2015 from evaders were "on track", he said.

The party should be "proud" of its economic record since taking power, he added, and would "stick to its guns".  

The renewed drive against tax evasion is designed to prevent the richest people in Britain from hiding the true extent of their liabilities and ensure they contribute to efforts to reduce the UK's huge deficit.  

Mr Alexander said: "£2bn is set to be raised this year towards a target of £7bn by 2015…"  

There already is a special unit within HM Revenue & Customs - set up by Labour - to focus on the tax arrangements of the wealthiest 5,000 people in the UK.  

But the new staff will be employed to scrutinise the accounts of an additional 350,000 people who each have a total wealth of more than £2.5m.  

The move comes amid a wider debate over taxation on the wealthiest in society and the future of the 50p top rate on earnings over £150,000.  

Chancellor George Osborne says the rate - introduced by Labour in 2010 - is temporary and has asked HM Revenue and Customs to see how much it is raising.  

There have been calls in recent weeks for the government to axe the 50p rate, with leading economists suggesting it is harming the UK economy and should be dropped "at the earliest opportunity".