HMRC settlement Deadlines/delays and the LC

[ChimpMaster]

HMRC might not care where the money comes from, but your bank will care about why you borrowed it, if you default etc. Quite right to go for TTP over a personal loan.

I also recommend joining LCAG for anybody reading. They are supportive and taking positive action against the Loan Charge. Lots of people in the same boat and sharing ideas. Talking with others there has personally helped me with my stress levels.

The problem with TTP is the 4.25% interest rate, which is this day and age is tantamount to extortion. A mortgage on your home is only charged at 1.4% (can be a little less or more depending on your circumstances) , which means that HMRC are charging 300% (3 times) more interest than a standard high street bank would.

[NeedTheSunshine]

The problem with TTP is the 4.25% interest rate, which is this day and age is tantamount to extortion. A mortgage on your home is only charged at 1.4% (can be a little less or more depending on your circumstances) , which means that HMRC are charging 300% (3 times) more interest than a standard high street bank would.

I agree - it's daylight robbery. But to remortgage/take out a loan under false pretences is fraudulent. This whole thing is a mess without landing oneself in more trouble.

[webberg]

The "loan" is unsecured.

You would not get an unsecured loan for the same rate as a mortgage.

I agree it's a lot but please compare apples and apples.

[Hitchphil]

The "loan" is unsecured.

You would not get an unsecured loan for the same rate as a mortgage.

I agree it's a lot but please compare apples and apples.

Is it unsecured? ............ mine were issued on receipt of signed off personal net wealth statements from me to show coverage & excess.

[Dmac]

Is it unsecured? ............ mine were issued on receipt of signed off personal net wealth statements from me to show coverage & excess.

Good point. Whilst HMRC say no-one will be forced to sell their main home, I believe they will have the right to put a charge against your house (so you can't just sell off and ride into the sunset, leaving them high and dry). So technically their "finance" (AKA TTP) is quasi-secured

[dammit chloe]

Good point. Whilst HMRC say no-one will be forced to sell their main home, I believe they will have the right to put a charge against your house (so you can't just sell off and ride into the sunset, leaving them high and dry). So technically their "finance" (AKA TTP) is quasi-secured

Last act before you die. Burn it down!

[Hitchphil]

Good point. Whilst HMRC say no-one will be forced to sell their main home, I believe they will have the right to put a charge against your house (so you can't just sell off and ride into the sunset, leaving them high and dry). So technically their "finance" (AKA TTP) is quasi-secured

My point was - is the original loan unsecured? (Not the resulting HMRC tax or charge) if it was only released to the beneficiary on receipt of a review / statement of sufficient Net Present Wealth (NPW)? Does that not suggest the trustees only issued a loan to someone who had (yes at that time) sufficient assets to repay it if needed? So if not written off (& then HMRC pounce for IHT as well) then is it technically its still secured against the recipients current NPW?

[webberg]

The loans from promoter vehicles are almost always unsecured (or at least I've not seen one that has the benefit of security).

Secured means that a specific valuable asset is at risk if you fail to pay.

The best example is a mortgage, secured on the property.

Most schemes loans are not secured.

An HMRC "loan" of the outstanding is not secured. If you fail to pay, HMRC recourse is to make you insolvent and go against your total assets, not a specific valuable asset.

Do not confuse being asked to prove your credit worthiness with security - very different things.

[Mrcurrey]

charging order on property

Do you know of anyone that has got a charge on their main property from HMRC, and what does it entail, for example can they force you to sell it under a certain time frame? As I assume, you could just never sell it till you die, and it would form part of your estate?

[piebaps]

The charge AFAIK is simply a legal mechanism which prevents you from pocketing the sale proceeds without first settling the debt. It won't prevent a sale, however when a purchaser notes the charge they may try to browbeat the price down as they sense a "firesale". If you have no short/medium term intention to sell, then it shouldn't be a problem. They're only likely to force a sale if you fail to meet whatever your agreed payment plan is.