“Unexplained wealth orders” (UWOs) - new powers for HMRC
There are strict rules that say when HMRC is entitled to start an investigation, or enquiry. It is allowed to make a relatively small number of random checks into self-assessment tax returns, otherwise HMRC must have a reason to start an enquiry.
Since 1 February 2018 UWOs can be used to allow government departments, including HMRC, to investigate an individual’s financial affairs if it appears their wealth isn’t backed up by sufficient income to justify it. However, UWOs will only be issued if: