New to All This, received Letter from HMRC

[Scottie99]

I would have thought you could have taken the £1m cash as Capital Gains with Entrepreneurs Relief also, but I'm no expert. Without wishing to cause alarm, on the face of it, it sounds very much like you're going to both be caught by the 2019 Loan Charge, which means you both being taxed on your £500k as if it was income in 2018/19. Assuming you have no other income this year, that's going to be a tax bill off £200k+ each.

You definitely need to get some advice, to be clear Big Group membership is not the way to go here, that is for more mass marketed schemes. Your solution seems to have been tailor made and I think you need specific, individual advice. I don't understand why your advisor is talking about the Loan Charge being dividends, maybe there's been some misunderstanding between you, either that or he seems to not understand the Loan Charge.

EDIT - I wonder how HMRC found out about your EBT, or is this actually a mass marketed scheme afterall?

The scheme was set up by a local accountant.

The letter from HMRC came out of the blue.

[cojak]

The scheme was set up by a local accountant.

The letter from HMRC came out of the blue.

Speak to webberg or Phil. They may well be able to point you in the right direction. You definitely need to get serious help on this.