CLSO2 or Self Assessment 2018/19 for Loan declaration

[Loan Ranger]

I don't think HMRC have said how it will all work in practice.

At the moment, all that's known is that you have to provide details of the loans between 6/4/19 and 30/9/19.

As for IHT, I think that depends on the type of Trust that lent the money.

[Wildfire8]

Suspended on Appeal

Loan Ranger’s very helpful article stated “Scheme users need to register an interest in settling by 31 May 2018, and then provide information on the loans to HMRC by 30 September 2018.”

My position and question is, HMRC have made assessments on 3 previous years and these amounts are currently suspended on appeal. If I now want to pay these amounts plus interest do I need to follow the paragraph above or just contact them directly?

[Loan Ranger]

Loan Ranger’s very helpful article stated “Scheme users need to register an interest in settling by 31 May 2018, and then provide information on the loans to HMRC by 30 September 2018.”

My position and question is, HMRC have made assessments on 3 previous years and these amounts are currently suspended on appeal. If I now want to pay these amounts plus interest do I need to follow the paragraph above or just contact them directly?

Just contact them and say you want to settle.

[TomG]

Thanks all for your suggestions.

Both settlement route and LC19 has its pros and cons.

Here is what i have concluded:

Settlement Route
Positive: Is cleaner and gives some certainty on the deal and draws a line.
Negative : I would be paying straight above 40% tax (since I was nearly higher tax payer in past years) and wont be able to use pension benefit

LC19
Negative: Less certainty as the cards remain open and chances are HMRC can always raise enquiry to finalise the figures.
Positive: I will pay considerable less tax by managing my 18-19 earnings and also make pension contribution this year which can be used to offset tax on loan amount since it will become earnings


Even if I am making considerable tax gain on LC19, I still feel certainity around settlement is a big deal.

So my question is that if I opt-in for Settlement now and later if I don't like the tax figures calculated by HMRC, can I refuse the settlement deal with HMRC and go for LC19 ( as in put loan amount in 18-19 SA)???

[Loan Ranger]

So my question is that if I opt-in for Settlement now and later if I don't like the tax figures calculated by HMRC, can I refuse the settlement deal with HMRC and go for LC19 ( as in put loan amount in 18-19 SA)???

Yes. Registering an interest in CLSO doesn't commit you to anything.