Loan charge review - Government response is here

[BrilloPad]

But surely this new team will need new legislation to go beyond the normal limits. How are the going to investigate a 2001 closed year without new powers (now the LC doesn't catch that year)?

I would like to think they cannot. However they imply they can. The issue is that since retrospection was used fully in anger in 2008, it is being used more and more. I would like to see it stopped.

I never used a loan scheme. However LC is clearly retrospective if it catches anything prior to 2017.

2:12 and 2:13 should be unnecessary.

HMRC are evil and Amyas is a traitor.

[PeterF]

But surely this new team will need new legislation to go beyond the normal limits. How are the going to investigate a 2001 closed year without new powers (now the LC doesn't catch that year)?

With new powers.

[starstruck]

With new powers.

very good but yes, at least they need to get some new powers so until that happens closed years are safe. But yes ominous all the same

[Iliketax]

Agreed about 2:12 . But 2:13 seems to be a catch all. I think this might include anyone using a PSC.

Surely the point of the review should be to create some certainty. Instead, Amyas uses unclear statements. HMRC still rule the UK. 2:12 and 2:13 should both be removed.

I wonder what Amyas was bribed with to get him to deliver such a crock?

Seems clear to me.

For the twenty year look-back period of the Loan Charge to be proportionate and
justified, taxpayers would need to have acted in a way that was perverse in light of a
clear legal position. This was not the case. I therefore conclude that the Loan Charge
should not apply to loans entered into by either individuals or employers before 9th
December 2010, being the point at which the law became clear. HMRC should
continue being able to settle and investigate cases prior to this point under their
normal powers where they have appropriate grounds, and a legal basis, to do so.

The government seem to be clear that they are talking about the existing law too.

2.8 Where the Loan Charge is no longer due as a result of changes set out in this
response, but HMRC has protected its position and can recover the
underlying tax¹, HMRC will continue to ensure tax is paid by pursuing the
underlying tax liability where it is legally due.

¹ Time limits on HMRC’s ability to assess and collect taxes through compliance activity generally depend on the taxpayer behaviour.
Assessment time limits are 4, 6 or 20 years depending on the behaviour that led to the inaccurate return. Additionally, Finance Act
2019 introduced a 12-year time limit for assessments involving offshore matters and offshore transfers

HMRC are going to get some new powers but they are mostly targeted at the promoters:

2.47 The Government is announcing today further measures to tackle promoters
of avoidance schemes that will reduce the scope for promoters to market tax
avoidance schemes. The Government will:

• Ensure HMRC can more effectively issue stop notices to promoters to
make it harder to promote schemes that do not work;

• Prevent promoters from abusing corporate entity structures that sell
schemes to avoid their obligations under the Promoters of Tax Avoidance
Scheme (POTAS) rules;

• Ensure HMRC can obtain information about the enabling of abusive
schemes as soon as they are identified, and enabler penalties are felt
without delay when a scheme has been defeated at tribunal;

• Ensure that HMRC can act decisively where promoters fail to provide
information on their avoidance schemes; and

• Make further technical amendments to the POTAS regime so that it
continues to operate effectively and to ensure that the General Anti Abuse
Rule (GAAR) can be used to counteract partnerships as intended.

2.48 Further detail on these measures will be set out at the Budget.

[DealorNoDeal]

But surely this new team will need new legislation to go beyond the normal limits. How are the going to investigate a 2001 closed year without new powers (now the LC doesn't catch that year)?

HMRC won't be able to do anything about pre-2010 closed years. Period.

[Iter]

HMRC won't be able to do anything about pre-2010 closed years. Period.

So for years 14-16 which were settled this year as part of the CLS02 does this mean I can get refund.
The years were open so would this just mean that the original enquires will remain and continue to be fought.

[DealorNoDeal]

So for years 14-16 which were settled this year as part of the CLS02 does this mean I can get refund.
The years were open so would this just mean that the original enquires will remain and continue to be fought.

Don't think so. My understanding is that any post-2010 years which were settled will remain final and settled.

If you think about it, if they undid that settlement then 14-16 would become subject to the loan charge.

[AnotherContractor]

HMRC won't be able to do anything about pre-2010 closed years. Period.

Yep, exempt from the loan charge but not from any future legislation:


2.12 While loans made before 9 December 2010 are removed from the scope of
the Loan Charge, the underlying tax liability for loans made prior to this date
remains. HMRC will continue to pursue those liabilities through enquiries
and assessments, and where necessary through litigation. HMRC will publish
updated settlement terms for all taxpayers in this position as set out above

[starstruck]

Yep, exempt from the loan charge but not from any future legislation:


2.12 While loans made before 9 December 2010 are removed from the scope of
the Loan Charge, the underlying tax liability for loans made prior to this date
remains. HMRC will continue to pursue those liabilities through enquiries
and assessments, and where necessary through litigation. HMRC will publish
updated settlement terms for all taxpayers in this position as set out above

Would it not be a bit weird for them to amend the loan charge only to subsequently introduce new legislation to do effectively the same thing. I see the above as pursuing through existing laws, e.g. where enquiries are already open. They have a big work load and they now need to do their job properly rather than relying on the LC so a new team to process all that work makes sense to me.

I'm not saying they won't come up with a LC2 for pre-2010 closed years, but surely this doesn't amount to a announcement of the same now and if it does all the news reports about this "climb down" (e.g. on BBC, Times, Daily Mail etc.) should reflect that.

If they undo these changes with new legislation then it will open up all the same questions again - which I think are not going to go away anyway as only 1/5 or so people have been let off the hook. So I fully expect the LCAG to continue their amazing work.

[Bobo]

Disguised remuneration: guidance following the outcome of the independent loan charge review - GOV.UK

Hi Webberg

If I settled in 2017, will I be entitled to any of the money back?