BN66 - Court of Appeal and beyond

[Cantthinkof1]

Many Thanks ...

No probs.

Your CTD would be just for the original 50 grand. The interest is just simple interest and isnt compounded so that's why you dont need to cover the interest in the cTD.

You do have to make other provisions for when the time comes to pay the, say, interest already accrued on the 50 grand though.

Yep, totally understand that now... starting to think this is the route I will take... will certainly stop the amount spiralling out of control!!!

Once again, Many Many Thanks - much appreciated!

[Leyther70]

Yep, totally understand that now... starting to think this is the route I will take... will certainly stop the amount spiralling out of control!!!

Once again, Many Many Thanks - much appreciated!

You do possibly have other options which are more beneficial in the event of a win. To chuck 50K into a CTD will give you no interest in the event of a win, hence its better to try and put your money somewhere that will give you > 3% return. If you have a mortgage with offset and you are paying more than 3% then your money would be better off in the offset, alternatively if you can get a bank account paying more > 3% then this may also be more beneficial (you need to take tax into consideration on your interest mind!). From both you will get the benefit of compound interest, the mortgage is probably the best option if its open to you.

Im probably one of the lucky ones in that I no longer reside in the UK and hence have offshore savings accounts available to me, these tend to be paying 3.5%+ and hence are looking favourable but I need to be careful not to fall foul of my residency tax laws.

Alternatively you could try your hand on the stock market or just put it all on the 3.30 at Newmarket :-)

Why cant it just be simple!

[Churchill]

I really find it hard to believe they didnt have a ready made statement for either outcome but, given their track record with communication, maybe I shouldnt be surprised one jot.

I'm sure that instead of whinging through an anonimous forum, if you make a complaint through the relevant channels you'll be satisfied that they're doing the best with the information they've got.

[reckless]

Recollections and the future

I see that MP are getting a bit of stick from some quarters. I recall attending one of their sales pitches in 2002. The scheme as presented obviously seemed attractive (in comparison to the then current fears regarding IR35 and possible retrospective investigations - ironic isn't it?!). One thing was made clear though - although MP's QC was convinced the scheme was sound - it was not ultimately guaranteed. Nor was retrospective investigation. I however then specifically asked about the possibility of retrospective changes in the law. The response from MTM's Lawyer/QC (a Mr Gallagher?) was 'the last time that happened in England was in 1066 after the Norman Invasion!' Well, Norman the Conqueror and Gordon Brown now have something in common!

As far as I see, MP have honoured their commitment so far. To be honest, when I started the scheme, I thought I had certainty in the law and uncertainty about MTM (MP) - how times change!

Like a previous posting said, when I tell people about this whole retrospective legislation business, they say 'but the governement can't do that - that's wrong! I was the one who posted the record breaking proposal on Nick Clegg's 'Your Freedom' site asking for suggestions to abolish unfair governement legislation (now kicked into the long grass)- remember that one? Come to think of it, I might just drop him a reminder.

So there may yet be hope in the SC appeal. Meantime, I intend to both save what I can and try and make my existing set-aside money work harder over the next 18 months, to outstrip the 2.5% interest penalty. Gold and silver seem attractive bets.

I would like to thank all the regular contributers to this thread, especially DR. It is good to know you are not alone.

Chins up comrades - let's hope for the best but plan for the worst.

[SantaClaus]

Assuming the appeal is allowed and we have time on our side, investing in gold or a high yielding currency isn't a bad idea.

I would personally prefer the Australian $ against gold for the following reason...

Gong short GBPAUD will get you "positive carry" as Australia's interest rate is 4.75% and the UK only 0.5%.
So potentially you could be paid 4.25% (minus brokerage fees) for holding the trade.

At the same time you could hope that the UK's economy is run into the ground by our inept politicians and HMRC driving business away from this country. That would help the pound sink against the aussie dollar

[helen7]

Please be wary about any stock market tips given on this forum.

A couple of months ago in this thread everyone was raving about some oil companies....all now down about 60-75%.

Glad I only invest in properly managed funds.

[Dieselpower]

Assuming the appeal is allowed and we have time on our side, investing in gold or a high yielding currency isn't a bad idea.

I would personally prefer the Australian $ against gold for the following reason...

Gong short GBPAUD will get you "positive carry" as Australia's interest rate is 4.75% and the UK only 0.5%.
So potentially you could be paid 4.25% (minus brokerage fees) for holding the trade.

At the same time you could hope that the UK's economy is run into the ground by our inept politicians and HMRC driving business away from this country. That would help the pound sink against the aussie dollar

The main problem there santaclaus is a major movement in currency rates which could lose you 20% of your funds +!!. Lots of people were doing the swiss franc/sterling carry trade a few years ago when the rate was about 2.2SFR to a pound. (They were taking our loans on property in the UK in SFR at low interest rates) Now its about 1.30 to the pound - ie a loss of about 41% in the space of 4 years!! Theres no such thing as risk free arbitrage.

[SantaClaus]

Please be wary about any stock market tips given on this forum.

A couple of months ago in this thread everyone was raving about some oil companies....all now down about 60-75%.

Glad I only invest in properly managed funds.

Yep, everyone should be aware of the risks before undertaking anything, and that includes using tax avoidance schemes.

It's a myth to think "properly managed" funds are better than your own investment decisions though. If the "experts" didn't get it wrong, we wouldn't have had the crash of 2008, Tech bubble, etc, etc.

[DonkeyRhubarb]

Not sure what your potential liability is?

Tax/NIC

Sign up with the HMRC gateway and this will give you the tax/nic suspended for each year.

https://online.hmrc.gov.uk

Your HMRC Services -> Self Assessment -> View account -> Tax Years

Then select each year you were in the scheme.

The figure you are looking for is Less other adjustments. If you click on this it should show the payments on account which are currently suspended pending appeal.

Interest

Then use my interest calculations in the 1st post of this thread to estimate the % uplift for each tax year.

[SantaClaus]

The main problem there santaclaus is a major movement in currency rates which could lose you 20% of your funds +!!. Lots of people were doing the swiss franc/sterling carry trade a few years ago when the rate was about 2.2SFR to a pound. (They were taking our loans on property in the UK in SFR at low interest rates) Now its about 1.30 to the pound - ie a loss of about 41% in the space of 4 years!! Theres no such thing as risk free arbitrage.

Unfortunately to make more money than your standard savings account interest rate, you have to take on more risk. Anyway, it was just an idea I threw in the air based on the previous comment about gold, which buying at these record highs is also risky.

Of course, for thrill-seekers, there's always Monte Carlo. Put the money you owe HMRC on black