Enquiry - capital statement checklist

During an enquiry HMRC may require a so-called capital statement to be prepared. Preparing an accurate statement is important to settling the enquiry. Use our checklist to help you produce your capital statement.

what is a capital statement?

HMRC will often ask for a capital statement if it believes the income declared for tax purposes is insuffient to support you.  A capital statement is a detailed summary, usually covering a number of years, showing capital worth, income of all sorts and expenditure. HMRC will look for a deficiency of available income and capital compared to outgoings. It will assume any defficiency is undeclared income unless there is a satisfactory alternative explanation. For more information on HMRC’s approach to capital statements, see section EM3580 (https://www.gov.uk/hmrc-internal-manuals/enquiry-manual/em3580) of its enquiry manual.

checklist

Use our Enquiry - Capital Statement Checklist to help compile information needed to prepare a capital statement.