Loan charge - review outcomes - impact on settlement

[Erhaab]

I'm gearing up to settle but as around 50% of my loans are in unprotected years I'm following webberg's strategy of progressing to the point of contract and then waiting for the review.

My current challenge is how to make sure HMRC structure the contract in a way that will allow me to settle just the protected years (should the loan charge be amended) or settle both protected and unprotected years (should the loans charge remain unchanged).

Am not sure if I should ask for separate contracts for the protected and unprotected years or whether a single contract provides the flexibility (I haven't seen a contract). Would appreciate the views of anyone else in a similar position.

[Iter]

I recommend watching this Parliament discussion with heads of revenue, from about 14:57 onwards where LC and settlement is discussed. Noting that HMRC have advised that settlement discussions /engagement carrying over 4th April should not incur any disadvantages....
https://parliamentlive.tv/event/inde...3-fc44608eaae8

[kryten22uk]

I recommend watching this Parliament discussion with heads of revenue, from about 14:57 onwards where LC and settlement is discussed. Noting that HMRC have advised that settlement discussions /engagement carrying over 4th April should not incur any disadvantages....
https://parliamentlive.tv/event/inde...3-fc44608eaae8

Very interesting to watch, thanks. HMRC very unrepentant as you'd expect.

[webberg]

I'm gearing up to settle but as around 50% of my loans are in unprotected years I'm following webberg's strategy of progressing to the point of contract and then waiting for the review.

My current challenge is how to make sure HMRC structure the contract in a way that will allow me to settle just the protected years (should the loan charge be amended) or settle both protected and unprotected years (should the loans charge remain unchanged).

Am not sure if I should ask for separate contracts for the protected and unprotected years or whether a single contract provides the flexibility (I haven't seen a contract). Would appreciate the views of anyone else in a similar position.

A contract is a contract.

If your contract includes both open and closed years, then that is the settlement.

If you want to settle open years only, your contract needs to be open years only.

Write and tell HMRC you want to settle open years only.

[freddythefrog]

Hang on... let me check I have this right. I don't have any open years and all of my loans are for closed years pre-2010. If I make this assumption then I won't owe anything at all. What am I missing?

I'm a bit confused here, are we saying that any loans prior to 2010 should be classed as closed years? I have loans dating back to 2005 and are still open?

[dammit chloe]

I'm a bit confused here, are we saying that any loans prior to 2010 should be classed as closed years? I have loans dating back to 2005 and are still open?

No. It's one of the possible scenarios that could come out of the review being done. The reason being that was when the first DR laws came in. So before that there were no specific laws regarding DR and hence should not apply is the reasoning.

Read the first message on the thread.

[mr_786]

Any realistic hope?

Does anyone believe genuinely that review might remove the retrospective nature of the loan charge? I am hoping against hope ....

[webberg]

Does anyone believe genuinely that review might remove the retrospective nature of the loan charge? I am hoping against hope ....

Even if your hope was realised, HMRC maintain that liability from the year of payment exists and where that year is open they will continue chasing it.

[dammit chloe]

Does anyone believe genuinely that review might remove the retrospective nature of the loan charge? I am hoping against hope ....

No. There may be some concessions but I doubt that it would be wholly removed. If there is enough pressure there may be a partial concession maybe from 2011, as suggested, or closed years remain closed. Any concession would have to tie into existing legislation somehow, not create some new class of legislation.

[mr_786]

No. There may be some concessions but I doubt that it would be wholly removed. If there is enough pressure there may be a partial concession maybe from 2011, as suggested, or closed years remain closed. Any concession would have to tie into existing legislation somehow, not create some new class of legislation.

Why do you say 2011 specifically? Just curious... as my loans are after 2011