Finance Bill 2017-18 V HMRC DR Settlement Terms

[ConfusedEasily]

webberb, for clarity ; in this paragraph are you referring to those individuals who have settled a year under CLSO 1 and if the Fin Act is explicitly including or excluding them from the DR?

It would have to explicitly exclude them from the 2019 charge. How would that play with the tax-avoiding public?

[pimpernell]

The structure of the clso1 settlement documentation is that there is a covering letter ( which says very clearly ALL years involved in a scheme to April 2011 are settled); and then the settlement doc itself which only refers to the tax for the open years ( plus interest) because this is the bit that deals with the actual money/ tax liability. Obviously this is a bit vague. So I asked the question(s) to get clarity and the answer I got was, in writing, that the settlement is for ALL years to April 2011 and I would be exempt from the 2019 loan charge.

All this happened in September this year, based on a submission for clso1 in June 2015.

I thought I was being helpful posting my settlement here but it seems people have entrenched views, as do I.

Mine are based on what HMRC have told me without expensive advice from a tax consultant. It’s good enough for me, and would be good enough in court if it came down to it, backed as it is by a legally binding agreement ( oops there I go again).

[pimpernell]

If I want to immerse myself in and buy into fear, I just need to turn on the News. I don’t need any more in my life.

Good luck.

[stonehenge]

So I asked the question(s) to get clarity and the answer I got was, in writing, that the settlement is for ALL years to April 2011 and I would be exempt from the 2019 loan charge.

Have you checked the letter recently because HMRC use special ink that disappears after a few weeks.

[pimpernell]

No. But you’ve got a point. It did say something about ‘self destruct 30 seconds after you sign it and pay’; but I keep getting flashbacks to 1960s American tv programmes anyway, so I ignored it.

[BrownOwl]

The structure of the clso1 settlement documentation is that there is a covering letter ( which says very clearly ALL years involved in a scheme to April 2011 are settled); and then the settlement doc itself which only refers to the tax for the open years ( plus interest) because this is the bit that deals with the actual money/ tax liability. Obviously this is a bit vague. So I asked the question(s) to get clarity and the answer I got was, in writing, that the settlement is for ALL years to April 2011 and I would be exempt from the 2019 loan charge.

All this happened in September this year, based on a submission for clso1 in June 2015.

I thought I was being helpful posting my settlement here but it seems people have entrenched views, as do I.

Mine are based on what HMRC have told me without expensive advice from a tax consultant. It’s good enough for me, and would be good enough in court if it came down to it, backed as it is by a legally binding agreement ( oops there I go again).

You say you didn't get advice from a tax consultant but did you get independent advice on the legally binding agreement or just take HMRC's word?

[LadyPenelope]

The structure of the clso1 settlement documentation is that there is a covering letter ( which says very clearly ALL years involved in a scheme to April 2011 are settled); and then the settlement doc itself which only refers to the tax for the open years ( plus interest) because this is the bit that deals with the actual money/ tax liability. Obviously this is a bit vague. So I asked the question(s) to get clarity and the answer I got was, in writing, that the settlement is for ALL years to April 2011 and I would be exempt from the 2019 loan charge.

All this happened in September this year, based on a submission for clso1 in June 2015.

I thought I was being helpful posting my settlement here but it seems people have entrenched views, as do I.

Mine are based on what HMRC have told me without expensive advice from a tax consultant. It’s good enough for me, and would be good enough in court if it came down to it, backed as it is by a legally binding agreement ( oops there I go again).

I also setted under CLSO1 and had a similar experience. Even though I had the contract of settlement stating they wouldn't ask for payment for the closed year I had included in the declaration, I wrote to them to check that the tax from the closed year wouldn't be included in the 2019 charge. They wrote back saying that the 2019 charge would not apply to the closed year as it was included in the settlement. This was in 2015 also.

I did have to pay IHT on all the loans when I got them written off in 2016, even the closed year.

[ChimpMaster]

I also setted under CLSO1 and had a similar experience. Even though I had the contract of settlement stating they wouldn't ask for payment for the closed year I had included in the declaration, I wrote to them to check that the tax from the closed year wouldn't be included in the 2019 charge. They wrote back saying that the 2019 charge would not apply to the closed year as it was included in the settlement. This was in 2015 also.

I did have to pay IHT on all the loans when I got them written off in 2016, even the closed year.

How much was the IHY as a % of the total loans?

Is there a specific calculation that HMRC apply to get that %?

[BrownOwl]

I also setted under CLSO1 and had a similar experience. Even though I had the contract of settlement stating they wouldn't ask for payment for the closed year I had included in the declaration, I wrote to them to check that the tax from the closed year wouldn't be included in the 2019 charge. They wrote back saying that the 2019 charge would not apply to the closed year as it was included in the settlement. This was in 2015 also.

I did have to pay IHT on all the loans when I got them written off in 2016, even the closed year.

Just to clarify, you wrote to them in 2015 asking if the 2019 loan charge applied?

[pimpernell]

Finance Bill 2017-18 V HMRC DR Settlement Terms

You say you didn't get advice from a tax consultant but did you get independent advice on the legally binding agreement or just take HMRC's word?

Yes I got independent advice. I asked my Mum. She didn’t tell me what I wanted hear, so I asked my brother. He said he was going down the pub and please don’t bother me with stupid questions. I was running out of options because i don’t have many people in my life. But I managed to get hold of the postman and I asked him and he said ‘will you sign here please’. It was a book on how to think positive from amazon, so I was dead chuffed. I got out my rose coloured glasses, took myself off to bed with a glass of warm milk and got completely lost somewhere between chanting ‘om’ and telling myself how really really valuable I am.I forgot to ask anyone after that. Silly me.