HMRC nudge letter and BADR lifetime allowance
14 Feb 2023
HMRC’s Wealthy External Forum are issuing letters to individuals who have made a claim for Business Assets Disposal relief in their 2021/22 tax returns, but whom HMRC believe have either already exceeded the £1million lifetime limit or their claim for this year has taken over the limit and as such the claim should be restricted. Recipients of this letter are being asked to check their position - if they are happy that the returns are correct, they should inform HMRC via the details provided within 30 days of receiving the letter. Anyone failing to do so risks having their return amended by HMRC or being made the subject of an enquiry.