Finance Bill 2017-18 V HMRC DR Settlement Terms

[starstruck]

ahh man.. am guessing you had no letters, no COP8s, no Assessment letters etc? so no idea you were in the crosshairs at all? That truly sucks. basically screwed over because HMRC didn't investigate.. thats really unfair..

Yep, I heard absolutely nothing and believed it was all above board.

EDIT - you know what. With talk of bankruptcies and suicides I don't begrudge people that got "a deal" (if you can call it that). Good on them, they are not to blame for all this. The blame lies firmly with HMRC's retrospection.

[BrilloPad]

Yep, I heard absolutely nothing and believed it was all above board.

EDIT - you know what. With talk of bankruptcies and suicides I don't begrudge people that got "a deal" (if you can call it that). Good on them, they are not to blame for all this. The blame lies firmly with HMRC's retrospection.

In all but 5 countries in the world retrospective legislation is illegal.

We would be better off in Zimbabwe.

[ConfusedEasily]

No - HMRC agreed to for go tax in closed years as a part of the SO - the contract stated that this was a settlement of tax affairs for years x to y inclusive (although I only had a tiny amount in a closed year.. others in my group were a bit luckier however) - again to be clear, the advise we have is the SO excludes us from 2019 (closed years and all) and nothing we've seen so far has changed that view.

I'm afraid that's wrong. The so only applied for those years you settled. If you have other years that you did not declare then HMRC are saying that they were not aware of them.
If during the period x to y you didn't declare membership of a scheme that applies to the 2019 charge then you still have to declare it in 2019.

[CDJ]

I'm afraid that's wrong. The so only applied for those years you settled. If you have other years that you did not declare then HMRC are saying that they were not aware of them.
If during the period x to y you didn't declare membership of a scheme that applies to the 2019 charge then you still have to declare it in 2019.

No.. that was part of the CLSO declaration.. you had to declare all of your loans and HMRC accepted that if there was no open enquiry they could not assess tax..

[ConfusedEasily]

No.. that was part of the CLSO declaration.. you had to declare all of your loans and HMRC accepted that if there was no open enquiry they could not assess tax..

Errr no. If you have that written down then well done. The thing is you will have to declare those loans under the 2019 charge. I think you might want to go and pay a tax specialist in the field and ask the question. You may not have to pay, but under the legislation, you have to declare.

I and four others paid a specialist to consider our cases. We have two who paid up under CLSO1, one with an open enquiry and me with a period with no enquiry. All of us have years that have no open enquiry.
In all cases, we have to declare under the 2019 charge (as the legislation stands).

If you are basing your assertions on paid for tax advice, then all experts disagree, but we will take our paid for advice and all will declare.

It may well be that HMRC honour your view, however, nothing in your agreement says that you don't have to declare under the 2019 charge because - well it wasn't the law at that point. This is retrospective.

You do, of course, have the option to make a voluntary payment under CLSO2.

[Joolsey86]

Confused early appears to be HMRC, treat with caution.

[cojak]

Confused early appears to be HMRC, treat with caution.

ConfusedEasily appears to have paid for his advice from tax specialists, so I don’t think he’s too worried about your cynicism.

[pimpernell]

I settled under clso1 with 6 years, 4 closed, 2 open. I paid tax and interest on the 2 open years only. I consider myself lucky and that I got off lightly. There may still be IHT. However o have it on writing that my tax affairs are settled for the years in question and I do not need to declare anything for 2019 lc.

[ChimpMaster]

I settled under clso1 with 6 years, 4 closed, 2 open. I paid tax and interest on the 2 open years only. I consider myself lucky and that I got off lightly. There may still be IHT. However o have it on writing that my tax affairs are settled for the years in question and I do not need to declare anything for 2019 lc.

6 years is a big hit.

So you have no undeclared/paid years.

From what I've read on the Loan Charge, you're correct in that you don't need to declare anything in 2019.

[ConfusedEasily]

I settled under clso1 with 6 years, 4 closed, 2 open. I paid tax and interest on the 2 open years only. I consider myself lucky and that I got off lightly. There may still be IHT. However o have it on writing that my tax affairs are settled for the years in question and I do not need to declare anything for 2019 lc.

As long as the undeclared years are in the settlement agreement then you may be fine. If the years are in a range you will need to declare them in 2019. That's the advice we got.
Just get some professional advice to be sure - then you're covered.