One to Many Letters from HMRC for suspected excessive Business Asset Disposal Relief claims

HMRC are sending One To Many letters in May to those taxpayers whom they believe exceeded the Business Asset Disposal Relief (BADR) £1million lifetime limit with a further claim in their 2021/22 tax return, or had already exceeded the limit prior to that claim. Recipients of these letters are urged to contact HMRC within 30 days to either confirm or amend their position; failure to do so may result in HMRC’s amending the return or opening an enquiry. These are similar to letters which HMRC send out last year.

Letter 1
Letter 2