Taxman accused of Stasi-like 'intrusion' into wealthy people's lives as HMRC sends out letters demanding extensive details about holdings to anyone earning over £200k

The taxman has been accused of behaving like the Stasi after sending hundreds of 'intrusive' letters to wealthy people asking them to reveal what they own. 

Officials from HM Revenue & Customs' 'Wealthy Team' are asking Britain's richest people to give them details about their properties, trusts, companies and other personal holdings. 

The three-page letter asks for a meeting in person or online and states the HMRC official's role is to 'build a clear understanding of your tax affairs, including your business interests, investments and wider financial arrangements'. 

It contains a 'suggested agenda' of their background and history 'including sources of wealth' and an 'overview of your wider affairs'. 

One question asks: 'Have you undergone any significant life events or undertaken any complex or novel transactions within the last 12 months which may impact your UK tax position?'

HMRC's 'Wealthy Team' department looks after Britain's 1.5 per cent wealthiest people who have 'incomes of £200,000 or more, or assets equal to or above £2m in any of the last three years'.

According to the government department, 'wealthy individuals may present a higher risk of error than other customers as the amounts involved are greater also because they may have investments in more than one country, making their financial affairs more complex'.    

But a UK-based billionaire who received the letter, as reported by The Sunday Times, said: 'Who do these people think they are, the Stasi? This will only encourage more people to leave.'

Kelly Greig, a partner at law firm Kingsley Napley, said some of her clients had received the letters and that it 'represents a sea change'.

Meanwhile, David Lesperance, a global tax and immigration adviser, said 'no other G20 country asks for this level of detail from its taxpayers about what they own'.

He said: 'The letters almost look like a scam email to extract information from sophisticated people who are unlikely to fall for something like this.' 

Recent figures from the Bloomberg Billionaires Index revealed billionaires with £120billion to their names have fled Britain since Labour came to power.

Analysis showed half the group – who have headed for destinations such as Switzerland, the United Arab Emirates and Monaco – fled in the weeks leading up to the introduction of sweeping tax reforms in April last year.

The biggest hit came from the departure of Indian steel tycoon Sir Lakshmi Mittal, who upped sticks last year for Switzerland and Dubai taking his £31billion fortune with him.

Also quitting Britain was Shravin Bharti Mittal – son of Indian businessman and BT’s biggest shareholder Sunil Bharti Mittal – who left with his £18billion share in the family fortune.

More recently it emerged that hedge fund tycoon Chris Rokos, who is worth £3billion, is moving to Greece. Mr Rokos paid £330million in taxes last year, making him Britain’s third-biggest taxpayer according to The Sunday Times.

An HMRC spokesperson said: 'We want to help all customers get their tax right, including the UK's wealthiest people.

'We've had dedicated customer compliance managers for wealthy individuals for several years, allowing us to identify and address tax risks effectively.'

HMRC is to be handed sweeping new powers to take money directly from the bank accounts of people who fail to pay their taxes under plans expected to be announced at the Budget.

The taxman will be able to automatically deduct payments from current and savings accounts without obtaining a court order as ministers attempt to recover £4billion in unpaid debts.

Chancellor John Healey is expected to unveil the crackdown targeting millions of individuals and businesses who owe relatively small sums but repeatedly ignore demands for payment.

Under existing rules, HMRC can only seize money directly from accounts if the taxpayer owes more than £1,000 and is left with at least £5,000 after the debt is recovered.

But the threshold could now be slashed to just a few pounds, with officials also able to recover outstanding fines and interest.

HMRC estimates that around 4.8million individuals and businesses owe less than £10,000 each, with their combined debts totalling £4billion.

The average unpaid bill among individual taxpayers is just £950.