Trust demanding repayment of loan

[Paralytic]

You can see the article here: TimesEditorScotland on Twitter: "Here’s the front page of Thursday’s @thetimesscot ...… "

Someone has written a blog post to say why they think the article is spin: Just when I thought I was out, they pull me back in! | Rangers Tax Case

Ah, Rangers Tax Case. Takes me back a few years when I was more active on Twitter and spent my time winding up Rangers* fans.

The blog is right that it was not that specific tax bill that cause the liquidation.

(* both old club and new club)

[DealorNoDeal]

- s554Z5 ITEPA 2003 Finance Act 2017 This one applies where you've already paid the tax. It works on a "gross" basis and so means that the amount subject to tax on the second event (e.g. the waiver) will be reduced (potentially to zero if you've paid tax on the whole of the loan and then the whole of that loan is waived).

So, if you do the following

1. settle in full with HMRC on all your loans
2. then get the loans waived (written off)

there should be no further tax to pay.

Please can we have no more muddying of the waters. Thank you.

[BrilloPad]

So, if you do the following

1. settle in full with HMRC on all your loans
2. then get the loans waived (written off)

there should be no further tax to pay.

Please can we have no more muddying of the waters. Thank you.

I can agree with all that. Since you used the word "should" rather than "wont".

There have been cases where HMRC have come after more. They should not have done so. But they did.

[Iliketax]

So, if you do the following

1. settle in full with HMRC on all your loans
2. then get the loans waived (written off)

there should be no further tax to pay.

You need to take your own advice on your own specific circumstances but if it is as simple as you say and "settle in full" means you've paid the tax (or you have agreed time to pay) then the amount subject to income tax on the waiver would be nil - so there would be no income tax or NIC to pay. There may still be IHT (that's entirely separate).

If you've not paid and not yet agreed time to pay (technically, you must have "agreed terms with an officer of Revenue and Customs for the discharge of that liability") then the other set of double tax relieving rules will apply. As these depend on tax rates then and now, there can still be some tax to pay.

Please can we have no more muddying of the waters.

I can't help you there.

[webberg]

Please can we have no more muddying of the waters. Thank you.

Well you have a choice of hearing different views, weighing them and deciding which is better/best.

Or you can have clear water which may be deep and treacherous.

[surfgeo]

Has anyone had any further dealings with FS Capital other than the initial letter

[DealorNoDeal]

...you've paid the tax (or you have agreed time to pay) then the amount subject to income tax on the waiver would be nil - so there would be no income tax or NIC to pay...

No mud (or fud) there. Thank you!

[WTF999]

FS Capital

Has anyone had any further dealings with FS Capital other than the initial letter

I only received my ‘loan repayment’ letters from FS Capital last night and have sought advice from my tax advisor. Awaiting his advice as I only received these demands on a Friday night.

I have already settled with HMRC but I haven’t paid that other £900 loan write-off charge and, like most (sane) people, I am in no position to repay the full loan amount!

I was about to write directly to FS Capital to state my position but thought it would be best to speak to my tax advisor beforehand.

[jog2001]

Further information

Has anyone had any further dealings with FS Capital other than the initial letter

Hi

Have you heard anything further from FS Capital at all? If so what did they say. We cannot get hold of them and have had confirmation that Pinotage has transferred the loans to FS Capital.
Any thoughts would be greatly appreciated.

[Forsythia]

My panic is over as they have agreed to just write the loan off. Anyone else who is in the same boat worrying about repaying their loan speak directly to Pinotage at their lawyers office (they appear to have seconded someone in there) on 01534 786705. There appears to be a lot of confusion created because of the speed at which the Trust is winding up. I hope other people who got the FS Capital letter, like me, get some good news from Pinotage.