AML 2019 Loan Charge

[Vincenth1]

Aml lc 2019

Looks like you have around £60k in loans.

Suggest you join LCAG asap and become a full member.

People usually recommend Graham Webber at WTT, Phil Manley at DSW or Enterprise Tax.

[Hero1234]

Very similar APN amounts

Thanks for your thorough answer.

Me using "fine" is just my terminology of taxed owed. I'm pissed about the retrospective nature of this. In my world its a punishment, i.e fine. I dont understand how they've managed to get this through. If I committed murder yesterday when it was legal, they sure cant then retrospectively charge me with murder today. Justice is meant to be fair and balanced.

Does anyone know if AML still exists and are willing to settle the loans? If not, my understanding is that I actually need to find 19k to clear the total balance?

I want to settle and get this over with, they made themselves out; that if you settle it will be done with. Now they want me to pay IHT, that has never been mentioned in any previous correspondence. This is why I mention loaded questions. They keep adding stuff on.

Hi, I have very similar amounts for similar years. Paid the APN by instalments. Facing similar to your. Dont know how to pm. Please what did the settlement offer letter look like?

[fifi]

Looks like you have around £60k in loans.

Suggest you join LCAG asap and become a full member.

People usually recommend Graham Webber at WTT, Phil Manley at DSW or Enterprise Tax.

Hi Thanks for the reply, so are you saying I'm going to owe 60k? to AML or a percentage to 60k in tax to HMRC?

Sorry only just started looking into this.

[Albert49]

settlement

Hi Thanks for the reply, so are you saying I'm going to owe 60k? to AML or a percentage to 60k in tax to HMRC?

Sorry only just started looking into this.

I would suggest you contact HMRC in order to request settlement, currently you are under the higher rate tax band for all 3 years , so will owe 20% of the loan values in tax + interest (approx 3% of the tax owed for each year since it was due ), so probably about £15K , plus NI if this was a self employed scheme.
If you do not agree settlement before April 5th 2019, you will be caught by the loan charge, to calculate this, add your PAYE for 2018-19 to the total loan amounts (£18,748 + £30,000 + £9500) and use this site : UK Salary Tax Calculator 2018/2019: Calculate my take home pay to calculate tax due for this year, and then subtract how much tax you have already paid.

If you are not comfortable dealing with HMRC yourself you may want to engage one of the tax advisors mentioned by others.

[howcanigetyoualoan]

Has anyone had any luck getting Aml loans released post settlement?

[TSMRTZ]

Has anyone had any luck getting Aml loans released post settlement?

I have spoken to Knox House Trust Limited about releasing the loan(s). They said they would consider it, but I don't think this exonerates you from the loan charge. The release still may incur a "tax event".
Please correct me if I am wrong in my assumption.

[webberg]

I have spoken to Knox House Trust Limited about releasing the loan(s). They said they would consider it, but I don't think this exonerates you from the loan charge. The release still may incur a "tax event".
Please correct me if I am wrong in my assumption.

A loan write off is taxable.

Paying a tax charge on a write off will reduce the value of the "relevant event" for the purposes of the loan charge.

If therefore you wrote off say 90% of the loan, a wrote off charge is on that amount and the loan charge would capture 10% as the loan has not been repaid in money.

[Dmac]

A loan write off is taxable.

Paying a tax charge on a write off will reduce the value of the "relevant event" for the purposes of the loan charge.

If therefore you wrote off say 90% of the loan, a wrote off charge is on that amount and the loan charge would capture 10% as the loan has not been repaid in money.

OK - is it different if your write-off request is on the bank of settlement with HMRC? I am hearing that some trustees will only agree write-offs if the individual has settled.

[webberg]

OK - is it different if your write-off request is on the bank of settlement with HMRC? I am hearing that some trustees will only agree write-offs if the individual has settled.

I'm assuming you mean to ask if a write off post or as part of a settlement attracts the write off charge in section 554C?

No it does not.

Part of the settlement terms say it does not apply.

However a write off PRIOR to agreement on settlement, especially now that the settlement may fall into the 2019/20 tax year, risks a confusing scenario and the (hopefully faint) possibility of paying tax on the write off AND the settlement.

You would have to hope that common sense says that if you are foolish enough to write off in 18/19 but settle in 19/20, then the earlier tax would be a credit against the settlement. However I just don't see that in legislation of HMRC statements and frankly, I don't trust HMRC.

[Ltdoptions]

A loan write off is taxable.

Paying a tax charge on a write off will reduce the value of the "relevant event" for the purposes of the loan charge.

If therefore you wrote off say 90% of the loan, a wrote off charge is on that amount and the loan charge would capture 10% as the loan has not been repaid in money.

Is it possible to pay off a percentage? I thought it was all or nothing?