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HMRC internal manual

Enquiry Manual

Recalculating Profits: Private Expenditure: Contributions from Relatives

You may be told that an apparent cash shortfall is met by contributions from relatives living at the family home. You should consider whether you have included all the expenditure relevant to such relatives, and whether the amount claimed as paid over is credible.

Claims that relatives living abroad contribute to the household budget or are the source of savings (perhaps being held on their behalf) need careful examination. Here you will need to get detail of how money is transferred, where it is changed into sterling, whether exchange regulations exist in the overseas country and judge whether what you are told is feasible.

Establishing whether an overseas relative has sufficient income to meet contributions may be particularly difficult, however you would expect to see supporting documentation.