A client has received a discovery letter (similar to FirstTab) regarding information held by HMRC regarding property income. Again, this is a total non-disclosure. There is some income tax due and large CGT bill. Client wants to claim PPR but has no evidence of residence at all (basically the client did not live there so CGT is due!)
Anyway, client bought this rental property before marraige. Sold after marriage. Used profits from sale to build own marital home in Republic of Ireland. Client has been unemployed for about a year now and has no funds to pay CGT.
How will HMRC proceed to collect? Client claims the marital home is in husband's name only, so even if they pursue her into Ireland, there are no assets in her name.
Should she declare bankruptcy?
Any input would be greatly appreciated folks.......................