Loan charge - review outcomes - impact on settlement

[webberg]

Correct me if I’m wrong but those who only have open years probably have no benefit to joining any fight against the loan charge as, if it was scrapped, HMRC would still pursue these open years. Especially if they had already provided loan figures.

Surely they would only have an interest in joining a fight against HMRC’s view that the loans are taxable, if such a fight exists?

And it does exist.

You are generally correct.

If all of your years are closed (no enquiries), then if the loan charge falls, your liability disappears.

If you have open (under enquiry) years, the the loan charge being removed means that HMRC will chase those years.

Therefore unless you have a plan to resist HMRC's view, you have gained little.

You need a reason why HMRC is wrong.

Go to Big Group thread.

[dangermaus]

And it does exist.

You are generally correct.

If all of your years are closed (no enquiries), then if the loan charge falls, your liability disappears.

If you have open (under enquiry) years, the the loan charge being removed means that HMRC will chase those years.

Therefore unless you have a plan to resist HMRC's view, you have gained little.

You need a reason why HMRC is wrong.

Go to Big Group thread.

I have loans from 2014/15 up to 2018/19 tax years and my settlement letter said these are all open years and interest has been added. Never had any enquiries. Therefore I don’t feel as though there is any other option than to settle or fight that the loans are not taxable.

Seeing as though the chances of winning aren’t very high, I’m inclined to settle

[chrisalis]

LCAG Judicial Review

Correct me if I’m wrong but those who only have open years probably have no benefit to joining any fight against the loan charge as, if it was scrapped, HMRC would still pursue these open years. Especially if they had already provided loan figures.

Surely they would only have an interest in joining a fight against HMRC’s view that the loans are taxable, if such a fight exists?

Many LCAG members only have closed years, which the APPG acknowledge but HMRC won't, as they won't accept the APPG public statements.

The LCAG JR has nothing to do with the schemes themselves. It's to prove that the Loan Charge is unlawful so it doesn't matter which scheme you were with.

It's no use expecting others to fight (and pay for) your fight for you.

Chris

[dammit chloe]

I have loans from 2014/15 up to 2018/19 tax years and my settlement letter said these are all open years and interest has been added. Never had any enquiries. Therefore I don’t feel as though there is any other option than to settle or fight that the loans are not taxable.

Seeing as though the chances of winning aren’t very high, I’m inclined to settle

except that HMRC have admitted that the Loan Charge is there to help them because they can't litigate all the schemes as it takes too long.

Big Group seems to have defences for many of the schemes. Will they be deemed valid. Who knows but HMRC are coming under a lot of flak and I can only hope at some point MPs will see that enough is enough because the public can't tolerate any more.

[RickG]

Correct me if I’m wrong but those who only have open years probably have no benefit to joining any fight against the loan charge as, if it was scrapped, HMRC would still pursue these open years. Especially if they had already provided loan figures.

Surely they would only have an interest in joining a fight against HMRC’s view that the loans are taxable, if such a fight exists?

I disagree. Once LC19 is repealed, those with open years have their legitimate right to challenge HMRC to prove the underlying scheme did not work.

We all know HMRC have been unable (or unwilling) to challenge these schemes effectively and are relying on LC19 to run roughshod over normal taxpayer protections.

Everyone affected by LC19 should be doing all they can, not relying on others to do it for them:

Fight Unjust Government Retrospective Laws - Before They Impact You

[webberg]

Seeing as though the chances of winning aren’t very high, I’m inclined to settle

Is that your opinion or an advisers?

[webberg]

As we have said from the first time that the loan charge was mentioned, removing that legislation has no impact upon HMRC's view or obligations in respect of those years where there are open enquiries.

If the loan charge is removed tomorrow, the enquiry process continues.

Therefore if you have open (under enquiry) years you need to think about how you deal with them.

The equation you will be running is a personal one.

[hudson]

As we have said from the first time that the loan charge was mentioned, removing that legislation has no impact upon HMRC's view or obligations in respect of those years where there are open enquiries.

If the loan charge is removed tomorrow, the enquiry process continues.

Therefore if you have open (under enquiry) years you need to think about how you deal with them.

The equation you will be running is a personal one.

So the 'Loan Charge' would, as the name suggests be a Charge? It is not settlement. This is an additional charge to potential settlement payment in the future.

You would hope that if the taxpayer ended up paying in the future in order to settle the open enquiry, then the payment made under the loan charge would be offset against any settlement liability, but there is no guarantee of this at all.

Is this correct?

[dangermaus]

Is that your opinion or an advisers?

Only my opinion but with the risk of a long drawn out battle with no certainty of defeating HMRC's view and then likely penalties and then further interest being added to what are already some substantial tax bills, surely anybody who can afford to settle would be advised to do so? That I guess is the only option that has any certainty. Those who cant have few other options than to fight.

I am using WTT's settlement service and am awaiting revised figures from HMRC but haven't been given any details on Big Group or even been told of it's existence by anyone at WTT. All I know is from what I've read in these forums and for me personally I dont see a way out of this paying anything less than full settlement.

[NeedTheSunshine]

Only my opinion but with the risk of a long drawn out battle with no certainty of defeating HMRC's view and then likely penalties and then further interest being added to what are already some substantial tax bills, surely anybody who can afford to settle would be advised to do so? That I guess is the only option that has any certainty. Those who cant have few other options than to fight.

I am using WTT's settlement service and am awaiting revised figures from HMRC but haven't been given any details on Big Group or even been told of it's existence by anyone at WTT. All I know is from what I've read in these forums and for me personally I dont see a way out of this paying anything less than full settlement.

Ask yourself this - is settlement really settlement? When you get your settlement contract I suggest that you get it very thoroughly reviewed.