Overdrawn Capital Account Scheme (Aston Mae / Glen Mae / Procorre)

[webberg]

So if I accept HMRCs Settlement Offer, I shouldn’t need to have any fictional loans settled and incur any Inheritance Tax?

That's reading too much into what I said.

I said that Glen May did not use a trust.

I said nothing about whether the loans were fictional or not; were loans or not; were made in a manner that attracts IHT (I think not).

Trying to reduce a scheme that ran for several years via different iterations and HMRC enquiries that have been ongoing for almost as long, to 21 words is not a substitute for researching the threads here, getting in touch with the independent Glen May users group and/or taking professional advice.

There are no shortcuts here to understanding the situation well enough to make a sensible decision.

[TroyT]

There are no shortcuts here to understanding the situation well enough to make a sensible decision.

Looks like there’s no answers either, just the same amount of confusion as the literature from HMRC.

[webberg]

Looks like there’s no answers either, just the same amount of confusion as the literature from HMRC.

We have researched the Glen May and related products and are very definitely not confused. We have a clear understanding of how the scheme worked, it's likely analysis within the tax rules and how they might play out through the enquiry process. This we have shared with the clients we have who used the scheme.

We are aware that there is an independent group of Glen May users. We have put on a webinar for them (which they no doubt have copies of) and for all I know have arrived at their own analysis that they are sharing.

So there are at least two groups who are not confused because they have taken steps to educate themselves as to how the scheme worked and how the tax position applies to it.

There is no reason why you should not do the same.

You can do it by conducting your own research and studying the law and history of the HMRC enquiry. There is plenty of public data on this.

You can join a group (as far as I know the indepenedent group has no fees), and see what they have.

You can join Big group, which does have fees.

You can go to a professional adviser who will charge a fee.

What you cannot do, is expect to get something for nothing.

[malvolio]

What you cannot do, is expect to get something for nothing.

Isn't that rather at the heart of the whole issue...?

[webberg]

Isn't that rather at the heart of the whole issue...?

I get into enough trouble sticking to what I know, without straying into philosophy!

[TroyT]

We are aware that there is an independent group of Glen May users. We have put on a webinar for them (which they no doubt have copies of) and for all I know have arrived at their own analysis that they are sharing.

So there are at least two groups who are not confused because they have taken steps to educate themselves as to how the scheme worked and how the tax position applies to it..

Can anyone kindly point me in the direction of the Glen May users group (the free one)?

Thanks

[TroyT]

They weren't DOTAS schemes, and as such, aren't applicable for APNs.

You are of course on the hook for the loan charge, discovery assessments and any settlements (you opt into).

Surely if you are declaring the Profit Share Figures, paying the relevant tax and NI; then you are in a way already “settling your tax affairs”, without any exposure to the Loan Charge?

[webberg]

Surely if you are declaring the Profit Share Figures, paying the relevant tax and NI; then you are in a way already “settling your tax affairs”, without any exposure to the Loan Charge?

You need to read the loan charge rules - carefully.

In my opinion, (others may differ), the loan charge can be avoided if you pay tax on the sums paid as a loan (or form of credit), in the year the loan was made.

Where you declare and pay tax on that value in a later period where perhaps different tax allowances/bands were in play, does that count as "settlement" for the purposes of the loan charge?

I don't know.

[TroyT]

You need to read the loan charge rules - carefully.

In my opinion, (others may differ), the loan charge can be avoided if you pay tax on the sums paid as a loan (or form of credit), in the year the loan was made.

Where you declare and pay tax on that value in a later period where perhaps different tax allowances/bands were in play, does that count as "settlement" for the purposes of the loan charge?

I don't know.

Sounds like the only sure fire way to make it go away is to take them up on the Settlement Offer - maybe?

I wonder how already paid tax and NI on Profit Share would be offset or accounted for in the Settlement Figures???

[webberg]

Sounds like the only sure fire way to make it go away is to take them up on the Settlement Offer - maybe?

I wonder how already paid tax and NI on Profit Share would be offset or accounted for in the Settlement Figures???

You're straying into areas that have had the benefit of attention from professionals.

HMRC are very unclear in this space. They will go for whichever route gives them maximum tax.

We - and I'm sure other professional firms - have developed a strategy that arrives at the "right" amount of tax rather than the "maximum".

I suggest that if you are unwilling to pay a fee for advice, you ask HMRC.