EBT and the 2019 Charge in a Nutshell

[prozak]

Hi All,

I had an ebt loan for a very short time back in 2009/2010. Was out before December 2010.

I recently received information from my trust about paying the loan and avoiding the 2019 charge. It sounded to me like they worked out a way to fleece me for more money. The loan is now held with a totally different trust than previously.

I haven't been paying any attention to these matters recently.

I've never received anything from HMRC about an ebt or one of those APN's and I am not even sure HMRC know I had an ebt as it's never come up.

Can someone give me a quick run down of the 2019 charge and any thoughts on where I might stand?

Obviously I am not expecting tax advice for free (you get what you pay for), just considering what my options might be.

Thanks.

[WalterWhite]

Hi All,

I had an ebt loan for a very short time back in 2009/2010. Was out before December 2010.

I recently received information from my trust about paying the loan and avoiding the 2019 charge. It sounded to me like they worked out a way to fleece me for more money. The loan is now held with a totally different trust than previously.

I haven't been paying any attention to these matters recently.

I've never received anything from HMRC about an ebt or one of those APN's and I am not even sure HMRC know I had an ebt as it's never come up.

Can someone give me a quick run down of the 2019 charge and any thoughts on where I might stand?

Obviously I am not expecting tax advice for free (you get what you pay for), just considering what my options might be.

Thanks.

Which scheme did you use?

There is probably a thread about them on here

[prozak]

Which scheme did you use?

There is probably a thread about them on here

No, nothing here. It was at the time a very small operation.

[prozak]

Still thinking about this.....

Several more ideas come to mind.

1. I am non-dom so I am exploring that as an option and not bringing the funds into the UK.
2. instructing the trust to pay the trust assets to a family member not in the UK.

Probably both dubious ideas.

[webberg]

You not only get what you pay for but you will be rewarded by doing some basic research.

Loans from EBTs are generally frowned upon by HMRC unless they are taxed.

If they are not taxed, then the 2019 charge will apply to all unpaid disguised remuneration loans as at 5th April 2019.

HMRC claim that this applies regardless of whether you have an open enquiry or your tax resident status in 2018/19.

Do not be surprised that HMRC know about an EBT loan. They have probably asked the trust for a list of users and the trustee may have decided to comply. Ask them.

[prozak]

Yes. Thank you.

I have decided to repay the loan and go from there.

And I did ask the trustee. They have never disclosed the loan to HMRC.