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Loan charge - review outcomes - impact on settlement

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  • TheUnseen
    replied
    I too have had HMRC say that some of my years are open when I have never received any letter telling me words to that effect.

    Is there anyway I can prove that they were closed?

    Surely, this is a fraudulent move on behalf of HMRC?

    Leave a comment:


  • EBTContractor
    replied
    Originally posted by Jedi007 View Post
    I have received settlement figures back from HMRC, they have classed some years as protected and others as unprotected. I don't know how they have drawn distinction.
    HMRC have classed years
    2015,
    2016 and
    2017 as Protected and charged interest -

    I have previously received Section 9A quires on years 2016 and 2017 so can understand why these are protected - any idea why they have they classed 2015 as protected also ?

    I am now totally confused as how to proceed with the so much uncertainty on LC, IHT , Loans being released and new schemes to avoid LC!
    Don't believe a word they say. They also claim I bad protected years, when in actual fact they previously confirmed the years were closed!

    Leave a comment:


  • Jedi007
    replied
    Originally posted by webberg View Post
    Nothing.

    If all your years are closed, then the loan charge is HMRC's only hope of collecting money from you.

    If the loan charge is amended, then you may owe nothing.

    (Part of me says that if the loan charge falls because it was introduced on false data - not the first or only time that has happened - then HMRC's revenge for being caught out may be swift and terrible. For the moment however, let's worry about the real.)
    I have received settlement figures back from HMRC, they have classed some years as protected and others as unprotected. I don't know how they have drawn distinction.
    HMRC have classed years
    2015,
    2016 and
    2017 as Protected and charged interest -

    I have previously received Section 9A quires on years 2016 and 2017 so can understand why these are protected - any idea why they have they classed 2015 as protected also ?

    I am now totally confused as how to proceed with the so much uncertainty on LC, IHT , Loans being released and new schemes to avoid LC!

    Leave a comment:


  • Cassy
    replied
    I settled tax years 08/09 and 09/10 in 2013. This was due to an assessment raised for those years. The HMRC chose not to tackle 07/08 because it was time barred.

    I received the July 2018 letter about the loan charge, had no idea what it was about-because I thought I had settled- and called the HMRC, the guy on the phone saw that I had settled and said that it was a mistake! I heard a news item on the radio the other day and thought hmm, somethings up and that the advice he gave was bogus. So as a result I have not been in touch with the HMRC, in time, to discuss a settlement for that one time barred year.

    In addition I called the Hmrc months ago to discuss another tax matter and they said I was owed a rebate and owed zero tax under the personal assessment process. Confusing.

    I’m done giving them my money. But have contacted my financial advisor anyway. My gut tells me to get the ball rolling but hold back from any settlement until I see what happens with the review. Thoughts?

    Leave a comment:


  • webberg
    replied
    Originally posted by Tiger22 View Post
    So, as a consequence of the review, will we know before the end of the tax year how many years back the LC19 legislation will go? When does it get finally decided what is the scope of the LC19 legislation?

    My course of action is heavily dependent on knowing how many years back LC19 will go and I have to decide whether to agree a CLSO2 settlement offer (which is a mix of open and closed years) by April 5th.
    You should assume that the loan charge will be unaffected by the review and that loans from 1999 are going to be included.

    Leave a comment:


  • Tiger22
    replied
    So, as a consequence of the review, will we know before the end of the tax year how many years back the LC19 legislation will go? When does it get finally decided what is the scope of the LC19 legislation?

    My course of action is heavily dependent on knowing how many years back LC19 will go and I have to decide whether to agree a CLSO2 settlement offer (which is a mix of open and closed years) by April 5th.

    Leave a comment:


  • webberg
    replied
    Originally posted by Joolsey86 View Post
    @NoWayOut



    There are 2 JRs.


    2) WTT - Which wants to force HMRC to go after employers first as per rangers decision in Supreme Court
    I have to correct you.

    WTT are NOT engaged in any Judicial Review action.

    We are in the preliminary stages of going to Tribunal to defend those clients who believe in our strategy and do not want to accept HMRC's version of the truth. That is NOT however a JR.

    A Judicial Review action is about how the law is applied to certain situations and whether that can be done fairly and competently by the authority charged with the task.

    JR's against legislation on constitutional grounds (usually Human Rights) have been seen in the tax world in the past 5 years on APNs and we are promised action on the loan charge.

    WTT has in the past had plans to use a JR to challenge HMRC's use of discovery but given that the loan charge rides roughshod over taxpayer protections from HMRC being able to hide their numerous errors and instead penalise people for those errors, we have stalled these until we see what happens with the loan charge.

    Leave a comment:


  • Joolsey86
    replied
    @NoWayOut

    No, that is more about retrospective legislation.

    There are 2 JRs.

    1) LCAG - Which wants to remove retrospective element of Charge, so it is from Royal Ascent 2016
    2) WTT - Which wants to force HMRC to go after employers first as per rangers decision in Supreme Court

    SO basically, HMRC have to go after you via an enquiry and not the Loan Charge.

    Everything is an unknown, so much on here is rumour, summisation and gossip, you are best speaking to a tax advisor to get it clear in your head, as my bullets above are probably wrong too!
    Last edited by Joolsey86; 13 February 2019, 10:10.

    Leave a comment:


  • nowayout
    replied
    Apologies if mis-reading, but are you suggesting if loans are 2011 onwards then nothing will change despite all the current activity around LCAG APPG and any success they have and therefore no option but to settle?

    Leave a comment:


  • Joolsey86
    replied
    Originally posted by dammit chloe View Post
    As someone just said that is when the Disguised Remuneration terminology came in, in that years finance bill.

    Not that I think they are ready for any sort of compromise yet. I am just suggesting that if there is it will probably use landmarks dates or tax status rather than invent something new. This would make it clear and easy to implement. It could equally well be closed years are recognised as closed as per House Of Lords recommendations.
    As a coincidence 2011 happens to be 6 years from 2017 when act was introduced which would cover the 6 years they would be allowed to go back.

    Leave a comment:

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