Not a loan.......

[basilspinone]

have been told funds from my trust are not a loan.....ergo.... exempt from the loan charge.....

but, if its not a loan...…..

[WTFH]

have been told funds from my trust are not a loan.....ergo.... exempt from the loan charge.....

but, if its not a loan...…..

Who is the trust?
Where are they based?
If it is not a loan (in their eyes) then what is it?

[webberg]

have been told funds from my trust are not a loan.....ergo.... exempt from the loan charge.....

but, if its not a loan...…..

The 2019 charge applies to all forms of credit.

If the trust has paid you in the expectation of receiving the funds back, it's a form of credit.

If the trust has distributed the funds to you it's perhaps taxable as a distribution.

If the trust has "earmarked" the funds to you exclusively, chances are it's within the disguised remuneration rules.

Detail is all.

[basilspinone]

Fiduciary Receipt

waiting to hear back on how the trust believe this is not caught by spotlight 39

[cojak]

If we don't know your provider we have no idea whether or not it's a loan.

But if you received more than 75% take home you'll be in the 2019 Loan Charge cross-hairs, make no mistake.

[webberg]

It will indeed be interesting.

You should be asking yourself the following:

How many users and recipients of this type of money would be willing to defend it in Court?

How many would be prepared to contribute to that defence?

[SlothGator]

Fiduciary Receipt

waiting to hear back on how the trust believe this is not caught by spotlight 39

Hi HMRC

[Loan Ranger]

Sounds like it's this one:

https://www.accountingweb.co.uk/any-...e-scheme-for-c

[Iliketax]

have been told funds from my trust are not a loan.....ergo.... exempt from the loan charge.....

but, if its not a loan...…..

Great. But a "loan" for the April 2019 is not necessarily the same as what you would regard as a loan in the real world. It includes something purported to be by way of a loan even if it is not actually a loan. Finance (No. 2) Act 2017

What does "a payment that is purported to be made by way of a loan" mean? No idea. But if you "signed" a loan agreement, or were told that they were loans, or "loans" were put on your P11D, or you excluded the payments from your self-employed accounts because they were "loans" then that sounds like they may actually be "loans" for the purposes of the April 2019 loan charge.

The fiduciary receipt thing (a made up concept very different to a nominee arrangement) looks and feels like a loan and so it is a loan for these rules. By being able to do whatever you want with the cash you are looking after (before returning it or applying it some way) means that, viewed realistically, it is a loan.

And don't forget that these very contrived arrangements are likely to fall within the scope of the GAAR (depending when they were done) so you really need independent tax advice that will cover (among all the other things) GAAR.

[WTFH]

Who is the trust?
Where are they based?
If it is not a loan (in their eyes) then what is it?

Fiduciary Receipt

Can you answer the other 2 questions?
Who is the trust?
Where are they based?

Then another one to throw in:
What intermediary company do payments from you/your company go to? They might send you a monthly "invoice" or something, that you then pay and then the money appears in your account from the trust.