Pension contributions can be used to relieve LC19

[ChimpMaster]

HMRC tell us (and we'll ask again this week) that they will not give up enquiries into earlier years, despite the DR charge.

I would put this at more than "high risk". I actually believe HMRC on this one.

For closed / unprotected years, there is no enquiry for HMRC to carry on with.

So for these years, if you pay the LC, what else is there for HMRC to do except to assume that the tax is paid and case is therefore closed.

Aside from IHT of course.

[Loan Ranger]

HMRC tell us (and we'll ask again this week) that they will not give up enquiries into earlier years, despite the DR charge.

I would put this at more than "high risk". I actually believe HMRC on this one.

Well I don't !!!

With the vast majority of schemes they've done very little over the past 20 years, other than opening enquiries and issuing APNs.

Once they've collected LC19, they'll have even less incentive to do anything.

[WalterWhite]

For what it's worth, any arrangement going to Court on the original analysis they worked to (Sempra, Dextra etc) is more likely than not to fail.

Cases going on the Rangers analysis this year have a better chance but perhaps not until elevated to Court of Appeal and above.

This is going to be a war of attrition and unfortunately, with one exception at present (not BG), I just don't see promoters hanging around for that series of battles. I hope I'm wrong.

I assume you refer to Baxendale-Walker/Buckingham Wealth here, or is there another promoter that is still hanging around to help?

[Whysoserious]

I assume you refer to Baxendale-Walker/Buckingham Wealth here, or is there another promoter that is still hanging around to help?

There's a few very high profile loan schemes taking on HMRC this summer. One of main ones i'm led to believe is K2 (made famous by Jimmy Carr) which has quite a few million in a dedicated "fighting trust fund" to take it all the way the the Supreme Court if needed.

Should make for an interesting case.

[webberg]

I assume you refer to Baxendale-Walker/Buckingham Wealth here, or is there another promoter that is still hanging around to help?

No, I'm not referring to that gentleman and his firm.

I have limited information on the intentions of these parties other than that they believe that their version of the arrangements vary from those described in the legislation.

I have an analysis of that position that I will share upon request but not here.

[webberg]

There's a few very high profile loan schemes taking on HMRC this summer. One of main ones i'm led to believe is K2 (made famous by Jimmy Carr) which has quite a few million in a dedicated "fighting trust fund" to take it all the way the the Supreme Court if needed.

Should make for an interesting case.

How do you know - for sure - that there is a dedicated fighting fund stuffed full of money?

We have seen such claims in other schemes and when the time comes to use that money, it's nowhere to be found.

I'm not saying the cash is not there. I am saying that it would be sensible to seek proof and then to consider putting it in the hands of an independent adviser.

(And no, I'm not interested in defending K2, paid or otherwise.)

[webberg]

For closed / unprotected years, there is no enquiry for HMRC to carry on with.

So for these years, if you pay the LC, what else is there for HMRC to do except to assume that the tax is paid and case is therefore closed.

Aside from IHT of course.

You are of course correct.

If only HMRC could retrospectively tax those closed years - oh wait, they are, but they're denying it's retrospection. They say only that it has retrospective effect.

[WalterWhite]

No, I'm not referring to that gentleman and his firm.

I have limited information on the intentions of these parties other than that they believe that their version of the arrangements vary from those described in the legislation.

I have an analysis of that position that I will share upon request but not here.

Intriguing. I will PM you

[webberg]

Well I don't !!!

With the vast majority of schemes they've done very little over the past 20 years, other than opening enquiries and issuing APNs.

Once they've collected LC19, they'll have even less incentive to do anything.

Not sure on what grounds you can be so sure?

The legislation might tell HMRC how to apply the tax rules but they are required to administer the tax system in a manner that applies equally to all.

It does not say that once they have the DR Charge "a new tax on a new source", they can abandon an enquiry on whether a loan is taxable income.

I agree that their performance has been woeful, incoherent, incompetent. It is not however a conspiracy and given that the whole purpose of the DR charge is to prevent the above shortcomings coming to public attention, why would they solve that problem only to immediately re-open another?

[Loan Ranger]

LC19 will have nudged a lot of people to settle.
LC19 itself will collect a £billion or two.

Job done.

Yes, officially HMRC will say they will continue to pursue enquiries but in reality?