What is the 2019 Loan Charge?

[webberg]

Good point - the loan wouldn't be closed, but the tax will be paid so or all intent and purposes that's the end of the saga.
Unless hmrc come back in 30 years time (or however long the original loan term is) for more (IHT?). But realistically its ended...

or your lender goes bust and a debt company buys the debt and asks you for the money?

[regron]

Good point - the loan wouldn't be closed, but the tax will be paid so or all intent and purposes that's the end of the saga.
Unless hmrc come back in 30 years time (or however long the original loan term is) for more (IHT?). But realistically its ended...

You should know buy now that HMRC will leave no stone unturned, so leaving your loan open, is still in my opinion a risk.

[creativity]

or your lender goes bust and a debt company buys the debt and asks you for the money?

Mine went bust and closed a long time ago...along with any chances of a company buying any contracts or debts I would imagine...

But good to know those with small loans can plan and get a good deal.

[Logical]

or your lender goes bust and a debt company buys the debt and asks you for the money?

Will it not be the case as well if one settle with HMRC?

[webberg]

Not sure what you're asking?

HMRC is not named on the loan agreement and as such is unable to impact whether the debt is repayable or not.

[WalterWhite]

Not sure what you're asking?

HMRC is not named on the loan agreement and as such is unable to impact whether the debt is repayable or not.

What would happen if somebody was hit by the 2019 loan charge and having settled with HMRC, then have the loan recalled by the company that issued it (or receivers)?

Do you think HMRC would then repay the tax bill that the client settled as it would show it to be a genuine loan?

Or am I being optimistic?

[webberg]

There is NO LINK between paying/not paying the tax and paying/not paying the loan.

If you pay HMRC the tax due either for the year they claim it or in 2019, the lender can still ask you for the loan to be repaid.

The 2019 charge is based on the outstanding loan at 5/4/19. Repaying after that date has no effect.

So, you need to ask yourself how likely is it that the lender will ask for the money?

We know some promoters have already asked for a partial repayment. We know another is apparently in discussions with a liquidator and HMRC with the implication that HMRC is owed money and the only source of funds is the borrowers. These are issues of contract and insolvency law and as such outside my professional competence but I suggest, worthy of checking with somebody who is competent.

[coder]

Hi

I took settlement a few years ago, although I had a closed year - which I now assume will be picked up by the 2019 loan charge?

My question is that CLSO included consideration for the remaining loans as subject to inheritance tax if written off. Would I still be charged IHT after the 2019 loan charge if the loan was written off? Or is that prevented by not being able to tax the same amount twice?

Also any idea how HMRC will contact us about the loan charge?

[DotasScandal]

Also any idea how HMRC will contact us about the loan charge?

No one will contact you. Supposedly, you'll have to declare loans on your tax return.

[dmuk]

I know this has been discussed but isn't totally clear.

What is the HMRC treatment for loans written off; closed; or provider no longer exists?

I read this statement from a tax consultancy:
"In effect, the loans will be subject to a new PAYE and NIC charge (as if they had been “earnings”) unless they have either already been taxed or are fully repaid by 5 April 2019. Any new tax charge will arise on/after 6 April 2019."

It appears if the loans were not paid off, then HMRC can still come after you - even if the debt was written off or no longer exists in 2019?

And the date of write off could be used in the calculation?