Trust demanding repayment of loan

[webberg]

How can the scheme provider take out a DOTAS number at the outset and later on still claim these are bona fide loans, especially when the scheme users ended up settling with HMRC and paying INCOME tax on these loans?

There is no correlation between DOTAS and loans.

There is no correlation between what the promoters claimed the money was and what HMRC (and the Courts probably) think it was.

Ultimately however, whatever way you remember the scheme was sold, promised, mis-sold, mis-represented, is not relevant.

You need to see clearly what the situation is TODAY and deal with it.

[DealorNoDeal]

You need to see clearly what the situation is TODAY and deal with it.

But there's no point fretting about something that might just theoretically happen.

Until someone actually demands repayment, with convincing threats, I don't see the need to do anything.

Chances are these companies are just looking to book fees for writing off the loans.

[webberg]

But there's no point fretting about something that might just theoretically happen.

Until someone actually demands repayment, with convincing threats, I don't see the need to do anything.

Chances are these companies are just looking to book fees for writing off the loans.

I agree that spending time worrying about things that might happen is pointless.

However, preparing for things that are likely to happen is sensible.

The write off of the loan is a TAXABLE EVENT.

Unless you wish to pay the tax therefore this is not an option.

Therefore you need to be thinking about those what ifs.

Doing your thinking 24 hours before - or worse 24 hours after - the event is not a recipe for sensible action and will cost you more.

[Forsythia]

But there's no point fretting about something that might just theoretically happen.

Until someone actually demands repayment, with convincing threats, I don't see the need to do anything.

Chances are these companies are just looking to book fees for writing off the loans.

My thoughts also (also my hope). They then have a chance of making some money. Paying back the loans is simply not possible, even if they make me homeless, I still wouldn't be able to come up with the money.

[surfgeo]

As I mentioned I did speak to FS Capital on Monday but got nothing out of them. As soon as I mentioned I was unsure as to why the the loan had been called in when I had already agreed and paid a settlement with HMRC and was in fact waiting for Pinotage to write off the loan, all the man said was "Ok, I'll add that to your file, the person you need to speak to isn't at his desk at the moment but will ring you back within the next 7 days"

I went on to mention that by then interest will be being charged and I'd like to know what is going on, to which I got "I'm sorry but I can't offer you anything more than I have already said but I will note your interest comment on your file"

I await the call!!!!!! Just would like to get it over and done with, whatever it is?

[NotAllThere]

and was in fact waiting for Pinotage to write off the loan

Unless I've misunderstood, I think perhaps some professional advice is in order.

The write off of the loan is a TAXABLE EVENT.

[DealorNoDeal]

Unless I've misunderstood, I think perhaps some professional advice is in order.

If someone has already paid tax on the loans (settled with HMRC), then writing off the loans doesn't trigger a tax charge*. There's no double taxation.

* there may be IHT but that's a separate matter

[BrilloPad]

If someone has already paid tax on the loans (settled with HMRC), then writing off the loans doesn't trigger a tax charge*. There's no double taxation.

* there may be IHT but that's a separate matter

Well I always thought the T in IHT stood for Tax.

And hence why NAT says, correctly IMO, that advice is highly preferable.

[NotAllThere]

If someone has already paid tax on the loans (settled with HMRC), then writing off the loans doesn't trigger a tax charge*. There's no double taxation.

* there may be IHT but that's a separate matter

Doh! "Unless you wish to pay the tax therefore this is not an option."....

[webberg]

If someone has already paid tax on the loans (settled with HMRC), then writing off the loans doesn't trigger a tax charge*. There's no double taxation.

* there may be IHT but that's a separate matter

Not entirely true.

If you have settled via the present (suspended) settlement opportunity, then a write off within the allocated time (30 days?) will not attract a liability.

A settlement outside the present opportunity? I can see nothing in the terms that would exempt a loan write off from being taxable under statute.

Would paying tax on the loan exempt a write off charge? Difficult to see how in law.

The value of the relevant step (the write off) can be reduced where the amount has been taxed before but that is a technical minefield.