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What Is Tax Litigation & Investigation in the UK

by John Hensley
What Is Tax Litigation & Investigation in the UK

In the coming year, the UK tax authority has become more aggressive in setting about tax avoidance, mainly in response to political pressure that it was soft on this issue. This has resulted in significant growth of UK tax disputes in the Tax Litigation and Investigation context.

HMRC has challenged and continues to challenge several alleged tax avoidance structures. They have also pursued more criminal tax litigation, both traditional tax offences and the activity that might historically have been regarded as tax litigation.

This article will explain to you Tax Litigation and Tax Investigation and everything related to this topic in detail.

Let’s begin!

What is Tax Litigation in the UK?

Tax Litigation describes the practices of resolving tax disputes with federal, state, local, and foreign tax authorities.

It is also the framework in which HMRC resolves all tax disputes through the law processes and procedures following the law.

It also consists of legal actions around disputes arising from tax non-payment, delayed taxpayer payment, unwanted tax collection by the authorities, etc.

It broadly describes the practice of resolving tax disputes with federal, state, local, and foreign tax authorities.

It also involves a business trust, estate, or individual. It can result in any form of taxation, including income tax, estate, and gift tax, state sales and use tax, or local property tax.

It has vast experience in managing and advising all the aspects of tax litigation in respect of significant value, complex, and high-profile cases in the UK domestic courts.

It is also the framework within which HMRC resolves tax disputes through civil law processes and procedures by the law.

What Is Tax Investigation in the UK?

A Tax Investigation is an inquiry into your tax payment history. It is conducted by HM Revenue (HMRC), with the severity of an investigation being utterly dependent on the case.

The most important thing is to recognize the type of tax inquiry and how best to deal with it. Identifying the reasons behind the tax inquiry may assist in that. Often HMRC will be reluctant to disclose very much detail at the outset.

So if you know of an irregularity in your tax affairs and do not know how to resolve it, or you are worried that you may be investigated or find yourself the subject of a tax investigation or prosecution. You must receive expert advice on navigating your way out of trouble. 

It is strongly recommended that you consult a specialist tax lawyer in the UK for immediate help.

Tax investigations audits are more likely if: you file tax returns late, pay taxes late or make errors that need correcting. There are inconsistencies or substantial variations between different returns, such as a significant fall in income or an increase in costs.

During the investigation, a team from HMRC will audit your accounts and ask you several questions. They might ask to visit you at your home, business address, or accountant’s office.


As you went through the whole article, your doubt related to the topic would be clear as everything is explained in detail, which can help you.

These two taxes consist of legal actions taken around disputes arising from tax non-payment or delayed payment by the taxpayers or unwanted/unauthorised tax collection by the authorities.

HMRC always investigates if there is evidence of fraud or criminal wrongdoing, but a range of innocent behaviours may also look suspect until they are correctly explained.

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