Settlement Opportunity

[squirrel]

https://www.gov.uk/government/public...information--2

I know this is serious, I'm caught in the middle of it all, but that's the funniest thing I've read in ages. President Prime-Minister Admiral General Cameron should be proud of his charges, such is the beauty with which the spin is spun!

I don't care what the rules say, paying my own IHT on my own estate before I've actually died lol

[DonkeyRhubarb]

I wonder if HMRC are reading this?

[Leebok]

I received my settlement figure and it too mentions possible IHT. I looked at their website and they contradict themselves, and pretty much admit that payments are loans, I quote

"IHT recognises the existence of the loans, following the legal form of the documents and any charges which arise from events which involve them. "

So in order to qualify for IHT they have to be loans, and HMRC recognise these as loans, as quoted by them on their website, so how can they then be liable for income tax. They need to decide what they are actually trying do here. It seems to me they are just quoting tax rules to scare people and they dont actually know what they are doing or what their tax rules are.

[Leebok]

I quote HMRC again,

"To finalise all your liabilities arising from use of a contactor loan scheme and ensure that no IHT charges arise in future, you may be able to arrange with the trustee for all the loans to be written off now. This may give rise to an IHT liability now but it will mean no further IHT charges will arise in future."

So they are basically admitting the payments are loans.

[StrengthInNumbers]

Why should EBT in UK be different compared to an EBT in IoM? HMRC are finally coming to terms ToAA is only option. Will take a case for them to back track on this.
Reading this enforces my view that settlement is an opportunity for HMRC not taxpayer. Everyone should pay the APN and wait for court decision. Their first argument of loans not being loans have been defeated already and seems like they are acknowledging it now while saving face.

[DonkeyRhubarb]

To me the point of the SO is probably so they can say they have given people every opportunity to settle before sending out APNs. They are even bending over backwards by extending the deadline.

In other words it's all just for show.

[DonkeyRhubarb]

I think HMRC are applying the laws of quantum mechanics.

What you received was a loan and not a loan at the same time.

[turbowoowoo]

Settlement Opportunity.

The settlement opportunity I believe is upto 2011, what if you have schemes after 2011? Ie 2011-2012?

Would HMRC reach a settlement including 2011-2012?


So my thinking is as follows

SO
+
Minimum penalties (if any prob just post 2011)
Agreed time to pay (24 months)
Issue is closed
-
Money is gone even if subsequently won at FTT
admitting defeat!

APN
+
Value is just for loans and no penalties/interest
Live to fight at FTT (AML)
-
If lose or no FTT penalties will apply
May not get agreed time to pay
May go on for years No closure.

really pissed off I ever got involved with these scheme!

fwiw just spoke to a tax consultant who is seeing lots of people asking for settlement quotes from HMRC which is why they are snowed under and have extended the offer.

Suggest everyone should ask for a figure whether you opt to settle or not... Ties them up

[dangerouswhensober]

Settlement Opportunity.

Suggest everyone should ask for a figure whether you opt to settle or not... Ties them up

I agree. Asking for a settlement figure seems (to me) to be "engaging" with HMRC about settlement - so no issues can be raised at a later date about whether you "engaged" or not before the (old) January dead-line.

Two further pieces of advice to anyone who hasn't asked for a settlement figure yet:

(1) Do NOT telephone - put and get everything in writing - and this applies not just to the settlement figure request, and

(2) Send all letters by registered post, and keep the postage receipts and copies of your letters - so that HMRC can't later deny that you were in contact - and they are also then required to put their replies in writing. (Registered letters only cost a few pence more than normal postage. And you can always mark your letters FAO Ms Lin Homer ...).

Also, I belive that answering written correpondence ties them up more (takes more time) than answering the phone (certainly does for me) - but, lord forbid, we are not petty people here, are we ...?

[centurian]

Anyway, if the SO due date is pushed back, then so also is the earliest possible APN issue date (provided you have 'engaged' with HMRC - e.g. asked for a final settlement figure).

Unfortunately not...

These notices may be issued to users of Contractor Loans avoidance schemes before the end of CLSO. If you receive an Accelerated Payment Notice (APN) during the CLSO, you must pay the amount requested or make representations within the specified time limit, even if you are discussing settlement with Contractor Loans team