2019 Charge - bear in mind when looking at any scheme
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  1. #1

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    Default 2019 Charge - bear in mind when looking at any scheme

    https://www.gov.uk/guidance/disguise...s-spotlight-39

    The above is a masterpiece of weasel words and uncertain meaning but appears to be targeting at least two suggestions we've seen about how to potentially deal with the retrospective charge.

    The principle that is behind the suggestion here may also arguably spell trouble for at least one other arrangement we have seen.

    If you are looking at a means to avoid this charge please bear this statement in mind and if you have any doubt at all, go and get some UNBIASED advice.

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    More time posting than coding


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    From my perspective, there are no weasel words or uncertain meanings. It seems very clear and explicit.

    This comes hot on the heals of the first GAAR advisory panel opinion concerning EBTs and gold. Now that is very interesting and likely to have very many consequences for people trying to side step the current legislation and the new April 2019 loan charge.
    Last edited by Iliketax; 11th August 2017 at 13:21. Reason: Spelling

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    Should post faster


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    A) I thought technically it isn't law yet so how come they just presume it will come in (of course it will) but when you speak to HMRC they are careful of how they describe it.
    B) I thought they weren't loans anymore anyway after the SC ruling and it ain't DR either..

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    Godlike

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    Why does this article imply that the loan charge is applicable to the employer rather than the employee?

    https://home.kpmg.com/uk/en/home/ins...gislation.html

    (see towards the end)

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    TripleIronDad


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    Employers with EBTs (and the trustees of EBTs) with outstanding loans to beneficiaries that have not already entered into EBT settlements with HMRC will want to consider how to respond to the loan charge now that further details are available.

    HMRC are no longer accepting settlements!

    How do they get away with this?

  6. #6

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    Quote Originally Posted by ChimpMaster View Post
    Why does this article imply that the loan charge is applicable to the employer rather than the employee?

    https://home.kpmg.com/uk/en/home/ins...gislation.html

    (see towards the end)
    You'd have to ask KPMG but I guess it is because their clients tend to be employers. The bit about "and monitor developments on the transfer of liabilities" says it may well be about employees (in that the PAYE liabilities may be transferred to employees.

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    Quote Originally Posted by difficulttimes View Post
    A) I thought technically it isn't law yet so how come they just presume it will come in (of course it will) but when you speak to HMRC they are careful of how they describe it.
    As they probably read this forum, I'd guess that they responded to criticism that they were too late warning people about dodgy schemes. So they decided to be a bit more proactive.

    Quote Originally Posted by difficulttimes View Post
    B) I thought they weren't loans anymore anyway after the SC ruling
    Er, no. If you were lent money there is still a loan. If tax has already been paid on it (or the money going into the trust or sub-trust) then the April 2019 loan charge won't tax it again.

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