No To Retro Tax – Campaign Against Section 58 Finance Act 2008

[DonkeyRhubarb]

A couple of weeks back it was mentioned there was another coordinated effort in the pipeline. Any timescale ? Need to respond to my MP but it seems a bit pointless asking they support Gawke meeting with NTRT since we already know exactly what the response will be. New tact or continue as we are ?

Hold fire. There will be a newsletter coming out imminently.

[bananarepublic]

Can someone confirm my understanding is correct:
a) If you buy a CTD its stops any further interest building up on your suspended tax liabilities
b) In addition to a) above you get interest on your CTD deposit albeit at a very low rate.
c) The interest rate on the CTD is slightly higher if you use it to pay tax rather than having the money paid back to you.
d) They only make up the interest when you actually use or cash in the CTD. The interest is paid gross and you'll have to declare it on your SA return

Correct ?

a) Yes
b,c) Yes, I think so, but irrelevant !!
d) I think so, but irrelevant !!

If you read the prospectus, interest is accrued between the point you buy the CTD and the due date of the tax for which it is encashed.

For us the due date of the tax is - assuming we cannot get this damned law overturned - when it would have become due if we had not claimed the exemption. For most people depending on when they joined, some time between January 31 2003 and January 31 2009.

Therefore, the question about whether you accrue interest on your CTD is pretty irrelevant unless of course we succeed and we can turn them back into cash.

[lucozade]

Response received from MP

He encloses the standard Gauke reply which is as below. What was good is that my MP says. "if there is anything else I can do for you please feel free to get in contact with me".

So no doors being closed.

The Gauke reply:

"it is important to understand that Mr X chose to use a wholly artifical scheme in order to avoid the tax he is due to pay as a resident of the UK upon his income earned in the UK. the scheme was described as aggressive by the last Government when introducing section 58, a description which is apt for a scheme which aimed to produce an effective tax rate of around 5 per cent or less.

Users of the scheme, such as Mr X, who were professionally advised, were aware that HMRC might challenge the scheme and that the outcome of any such challenge was uncertain. Those seeking to avoid tax through aggressive schemes such as this must accept the risk that the scheme they have chosen does not work, and be prepared for the consequences.

HMRC did not accept that the information provided in the responses to the various points raised by the users of the scheme, such as Mr X, is either misleading or inaccurate and nothing that I have received from him and other users of the scheme gives me reason to believe otherwise. The previous Government gave full consideration to the circumstances surrounding the use of this artificial scheme before concluding that it was reasonable and proportionate to introduce retrospective legislation to put beyond doubt that the scheme does not work. I do not propose to disturb this outcome.

In view of this, I do not feel that anything further can be usefully acomplished by meeting with representatives of the No to Retro Tax campaign, a campaign whose only purpose is the removal of legislation put in place in response to a wholly artificial tax avoidance scheme. I must therefore decline Mr X's invitation to do so."

[DonkeyRhubarb]

Montpelier's ECtHR application

The case has been lodged and is in the queue awaiting a judicial review of its admissibility.

According to the court, this could take anywhere from 6 months to 3 years.

If it passes this hurdle then it would join a further queue for the case to be heard, which could take several more years.

[lucozade]

The case has been lodged and is in the queue awaiting a judicial review of its admissibility.

According to the court, this could take anywhere from 6 months to 3 years.

If it passes this hurdle then it would join a further queue for the case to be heard, which could take several more years.

Cheers DR,

Does this mean our returns can remain on appeal pending it's outcome?

[BrilloPad]

Cheers DR,

Does this mean our returns can remain on appeal pending it's outcome?

My understanding is no. I am hoping someone will tell me I am wrong.

[DonkeyRhubarb]

My understanding is no. I am hoping someone will tell me I am wrong.

An ECHR case doesn't officially exist until it passes the European court's admissibility test.

Only then might HMRC pay any heed to it.

[Fireship]

Mortgage advice...

Anyone had the pleasure of applying for a mortgage recently?? Seems things have changed somewhat in the last couple of years and most of the big lenders (with realistic rates) will no longer accept a simply accountants letter, instead you need 2 years trading accounts produced and signed by your accountant or the last 2 years SA302’s…..

The former isn’t applicable and I’m guessing the latter isn’t going to help as no doubt the SA302’s will illustrate what HMRC believe to be the case rather than reality…. Plus I’m not even sure how the current scheme would look on such a form, not favourable I would guess due to the way it’s structured….

Montpelier used to have lenders they worked with but I’m not sure that’s the case any longer, certainly didn’t seem to be the case a couple of months ago when I last discussed with TQ….

Any advice?

[smalldog]

Anyone had the pleasure of applying for a mortgage recently?? Seems things have changed somewhat in the last couple of years and most of the big lenders (with realistic rates) will no longer accept a simply accountants letter, instead you need 2 years trading accounts produced and signed by your accountant or the last 2 years SA302’s…..

The former isn’t applicable and I’m guessing the latter isn’t going to help as no doubt the SA302’s will illustrate what HMRC believe to be the case rather than reality…. Plus I’m not even sure how the current scheme would look on such a form, not favourable I would guess due to the way it’s structured….

Montpelier used to have lenders they worked with but I’m not sure that’s the case any longer, certainly didn’t seem to be the case a couple of months ago when I last discussed with TQ….

Any advice?

Hi FS, yes it's sa302's as a minimum plus accounts and bank statements in some cases. All lenders have closed ranks and agreed to standardize on sa302's as being the minimum criteria to prove income. I've just been through mortgage application hence the response.

Good luck!

[Fireship]

Hi FS, yes it's sa302's as a minimum plus accounts and bank statements in some cases. All lenders have closed ranks and agreed to standardize on sa302's as being the minimum criteria to prove income. I've just been through mortgage application hence the response.

Good luck!

Hi Smalldog,

Thanks for the reply!!

I assumed SA302's would provide a rather negative view for any lender, is that not the case?? Haven't downloaded mine yet - am going to try and do that today!

Which lender did you use in the end if you dion't mind me asking?