I've scoured this forum and the internet for an answer to this question but have been unable to find it, I'm hoping someone here may be able to help.
My situation briefly - had income from loans in 2005/6 from "scheme A" and income from loans in 2006/7 from "scheme A" and "scheme B", 2005/6 and 2006/7 were both open years. I also had income from scheme A loans from 2002/3 but those years were closed. I settled via the CLSO for 2005/6 and 2006/7.
HMRC's letter inviting me to settle was slightly vague in places, some paragraphs implying that it was settling my tax affairs up to 2011....
AndYou can settle your affairs now. This will give you certainty about your tax liabilities, and save you and us costs. Reaching agreement now will mean that liabilities in relation to sums you have received under these arrangements for years up to and including 2010/11 are final
The second quote could be interpreted a couple of ways, i.e. that you can settle and only have to pay for open years and it may not be so good in the future. Or that they're leaving themselves the option to get money for the closed years even though you've settled. But it certainly hinted at the forthcoming loan charge disregarding closed years.During this settlement opportunity we will restrict settlement to 2010/11, and earlier years for which we have open enquiries or assessments. In any future proceedings we will consider the conditions for all potential years of charge to 2010/11, which could include years where there is no current enquiry or assessment.
What I'm now slightly confused about is the wording in the "Tackling Disguised Renumeration" consultation document posted on 10th Aug 2016
on page 21
Bulletpoint 41 seems to imply that earlier loans, and in my case from closed years that weren't included on the CLSO, are not affected by the loan charge.Interaction with settlements
38.As also set out in chapter 5 of the technical note, the loan charge will not apply where income tax has been paid on a DR loan, or on the money from which the DR loan was made. This is provided for by the new double taxation provisions that are outlined in chapter 5 of this document. This includes cases where DR loans have been included in a settlement reached with HMRC.
39.Generally, where a DR loan hasn’t been included in a settlement, and tax hasn’t been paid on it, the loan charge will apply.
40.However, there are some cases where this does not apply due to the details of the terms on which those settlements were reached. For example, this is the case for those who settled on the terms offered as part of HMRC’s “Contractor Loans Settlement Opportunity”.
41.This means that where one of those individuals has had an offer of settlement accepted by HMRC on one or more loans from a DR scheme on such terms, the loan charge will not apply to those loans, or to any earlier DR loans implicitly covered by that settlement as a result of those terms.
Can anyone confirm this?
Apologies for the lengthy post and thanks in advance for any information.