Settling and writing off loans

[TroyT]

I operated through Glen May for a number of years and I’m currently investigating the option of settling with HMRC as opposed to paying the tax on the Profit Share figures, then still being investigated and possibly incurring fines etc.

What does this mean, or what is the correct answer to:
“I intend to have the loans written off within 30 days of the settlement date” question on the settlement pack?

What does then even mean?
Glen May insist I did not receive loans. This adds further confusion to the situation.

What are the implications of having or not having the (alleged) loans written off and inheritance tax?

[Lonerous]

What does this mean, or what is the correct answer to:
“I intend to have the loans written off within 30 days of the settlement date” question on the settlement pack?

I rang HMRC asking this very question. The chap on the phone told me to tick "no" as I am asking for a repayment plan, rather than paying the full amount in 30 days. However, to my lay understanding, release of the loan and time to taken to repay feel like two separate issues.

I'd hate to tick the wrong box out of ignorance and end up facing further taxation or charges.

[Dmac]

Ignotant HMRC

I rang HMRC asking this very question. The chap on the phone told me to tick "no" as I am asking for a repayment plan, rather than paying the full amount in 30 days. However, to my lay understanding, release of the loan and time to taken to repay feel like two separate issues.

I'd hate to tick the wrong box out of ignorance and end up facing further taxation or charges.

That just goes to show the total ignorance and lack of ability / training of HMRC staff. Terrifying, when they are dealing with our futures!

[Lonerous]

Can anyone advise what the statement “I intend to have the loans released within 30 days of a settlement agreement” actually means? (NB: this is the exact text in my pack)

Or more to the point, what are the implications of ticking 'yes' or 'no'?

I've researched the topic on this forum and can't find a concrete answer.

As an FYI, my settlement pack also states "I can confirm that no inheritance tax liability arises on the payments received from these schemes".

[GreenMirror]

HMRC often give wrong advice by phone.

Best to get everything in writing. Or at least record the conversation.

[passerby]

Can anyone advise what the statement “I intend to have the loans released within 30 days of a settlement agreement” actually means? (NB: this is the exact text in my pack)

Or more to the point, what are the implications of ticking 'yes' or 'no'?

I've researched the topic on this forum and can't find a concrete answer.

As an FYI, my settlement pack also states "I can confirm that no inheritance tax liability arises on the payments received from these schemes".

Loans remain loans and have to be written off at some point unless you want to pay them back.

The writting off is what they mean by releasing.

They will hit you with IHT if you tick the box from what I heard.

[howcanigetyoualoan]

Loans remain loans and have to be written off at some point unless you want to pay them back.

The writting off is what they mean by releasing.

They will hit you with IHT if you tick the box from what I heard.

And by not ticking the box they’ll hit you with IHT every 10 years or so until you die ( happy to be corrected!)

[Lonerous]

And by not ticking the box they’ll hit you with IHT every 10 years or so until you die ( happy to be corrected!)

So for the statement I intend to have the loans released within 30 days of a settlement agreement which box needs to be ticked? 'Yes' or 'no'? And what are the implications of ticking either one?

Also, as per my post above, my HMRC settlement pack states "I can confirm that no inheritance tax liability arises on the payments received from these schemes".

[passerby]

So for the statement I intend to have the loans released within 30 days of a settlement agreement which box needs to be ticked? 'Yes' or 'no'? And what are the implications of ticking either one?

Also, as per my post above, my HMRC settlement pack states "I can confirm that no inheritance tax liability arises on the payments received from these schemes".

One key question for you is if your trusts are still operating.

Mine have long been dead/closed so it does not matter. I have not ticked the box which means I have just delayed IHT for a bit.

If the trusts are operating you can ask them otherwise, you will need some professional advice. We are just freelance workers here.

[kryten22uk]

One key question for you is if your trusts are still operating.

Mine have long been dead/closed so it does not matter. I have not ticked the box which means I have just delayed IHT for a bit.

A trust doesn't just die/close, if it's not "active"; it would need to settle all its creditors and debtors first. The fact that a trustee may have disappeared, doesn't mean loans have been written off.

In your specific case, did you get any confirmation that the trust has ended and your debt has been written off?