Loan charge review - Government response is here

[cojak]

I made this a sticky.

[Forsythia]

Why are you saying "Closed Years" - It looks to me it's any year - am i missing the point?

Alos, what about any APN already paid - do I get that back?

Yep. I understood it like that. As in, any loan pre-2010 not now taxable and those made post-2010 taxable but only if open enquiry. Am I mis-reading this???

[dangermaus]

My loans were all post 2010. No loans declared to HMRC until starting settlement. I’ve now settled the tax and NI and got all the loans written off. This changes nothing for me and will probably just cause further delays to the IHT part of the settlement (if applicable).

The review by AM and implementation by HMRC seems fair but the biggest thing for me is the amount of time it has taken/is taking to settle. I expect most who are going through settlement will still have to settle based on these new rules but HMRC will be even slower now and people won’t be able to get settlement finalised for a long while yet!

[nucastle]

3 years worth of Procorre victimhood here, between 2012-2015. All three years had Section 9A enquiries which were responded to, and then applied for settlement before the original deadline and heard nothing since due to their backlog. Assuming from here that everything is 'open' and the way SA tax returns were done for us, did not constitute proper disclosure of DR.

As far as I can see, i'm still on the hook for the loan charge but it has the potential to be spread over three years as opposed to just the one, or maybe can delay it till September if I get around to arranging settlement before then, if i'm interpreting the response correctly. Loan charge doesn't settle things properly and HMRC don't seem to accept any responsibility for missing their own deadlines so .... Looks like no change for me.

[Forsythia]

Yep. I understood it like that. As in, any loan pre-2010 not now taxable and those made post-2010 taxable but only if open enquiry. Am I mis-reading this???

Actually, having read through HMRC stuff again, I think I am not helped by this report at all. I think I would still need to settle pre-2010 also as enquiries were open.

[ChimpMaster]

Thing is, HMRC can use existing powers to open new enquiries on your tax years up to 6 years ago anyway. So if you fall out of the LC criteria, you are still susceptible to an assessment if HMRC can raise it in time.

As for anyone questioning pre-2010 loans: yes they are out of scope for the LC now but any protected years will still need to be dealt with under existing powers that HMRC has. See page 6 of https://assets.publishing.service.go...t_response.pdf , so possibly Settlement or Tribunal.

[dammit chloe]

Woohoo

All my loans are pre-2010 closed years! No more LC -
Now that is a lovely Christmas present!

We still need to keep fighting. You are not safe. The Govt response says they are looking to set up a new team and new ways to target pre-2010. I expect another settlement/coercion strategy.

[ChimpMaster]

We still need to keep fighting. You are not safe. The Govt response says they are looking to set up a new team and new ways to target pre-2010. I expect another settlement/coercion strategy.

Yes, for pre-2010 years that HMRC protected, they are already talking a new Settlement opportunity in 2020 or Tribunals. But that was always going to be the case and is also the same for people who have open enquiries after 2010. Even if the LC was completely removed it would not have meant that protected years were resolved.

This will be an ongoing battle.

[Forsythia]

Yes, for pre-2010 years that HMRC protected, they are already talking a new Settlement opportunity in 2020 or Tribunals. But that was always going to be the case and is also the same for people who have open enquiries after 2010. Even if the LC was completely removed it would not have meant that protected years were resolved.

This will be an ongoing battle.

Is it not possible they will just APN anything they cannot get with LC??

[dammit chloe]

Is it not possible they will just APN anything they cannot get with LC??

I don't know the criteria for APNs. Think there are, theoretically anyway, limits as to what they can do.