What to do if opting for Loan charge

[hmrcvictim]

Hi,

I am a british citizen in US. I received letter from HMRC 2 days back suggesting that I settle before the LC kicks in. However, in my case, it is actually preferred that I don't settle but pay LC, for two reasons:
1) I used the scheme in 2010 for only 5 months - total loan £26000 - when I was new to UK
2) I presently have very low UK income (rental income less than £10,000 a year).
So, even if they add up loan to my income derived from UK, I should be in 20% bracket.

My question is, what is my course of action if I want to pay LC? should I ignore HMRC's letter? or should I respond to them (they have given me email address) and let them know that I will pay LC?

Thanks !

[Delendog]

Hi,

I am a british citizen in US. I received letter from HMRC 2 days back suggesting that I settle before the LC kicks in. However, in my case, it is actually preferred that I don't settle but pay LC, for two reasons:
1) I used the scheme in 2010 for only 5 months - total loan £26000 - when I was new to UK
2) I presently have very low UK income (rental income less than £10,000 a year).
So, even if they add up loan to my income derived from UK, I should be in 20% bracket.

My question is, what is my course of action if I want to pay LC? should I ignore HMRC's letter? or should I respond to them (they have given me email address) and let them know that I will pay LC?

Thanks !

The letter was just that a letter. If I was you i'd not respond at all. The LC loans do not have to be declared until Sept 2019 -so wait until then and hope the rule my get changed. You could join LCAG and also help in those rules being changed.

[Aki1]

Hi,

I am a british citizen in US. I received letter from HMRC 2 days back suggesting that I settle before the LC kicks in. However, in my case, it is actually preferred that I don't settle but pay LC, for two reasons:
1) I used the scheme in 2010 for only 5 months - total loan £26000 - when I was new to UK
2) I presently have very low UK income (rental income less than £10,000 a year).
So, even if they add up loan to my income derived from UK, I should be in 20% bracket.

My question is, what is my course of action if I want to pay LC? should I ignore HMRC's letter? or should I respond to them (they have given me email address) and let them know that I will pay LC?

Thanks !

As delendog suggests - LCAG are a great place to start 2019 Loan Charge Action Group (LCAG) - Loan Charge Action Group

[gaz8000]

What to do

I have been out of the country since 2000 and can't even remember having the loan scheme. I received a letter saying i should settle now before the loan charge. I am not sure if I should contact them (which would confirm my address) or ignore it. Either way I have no documentation from that period to prove anything as I can't even remember the scheme.
Any ideas what I should do?
Can they chase me abroad for the money?
TIA

[Vincenth1]

What to do

Don't ignore it, get good independent tax advice
Join LCAG and fight the LC
Check whether your in a MARD country