Loan Scheme - Trusts recalling loans?

[CDJ]

I used a loan based scheme donkeys ago… fully settled with hmrc 10 years ago…. Have just received a letter from the trustees asking me to repay the loans or prove that I have settled with hmrc.

Curious whether any others had received similar…. Honestly,I thought I’d put this all to bed… on the face of it I just need to provide my settlement details…. But not entirely sure if it smelled right

[Jumper]

Hi CDJ, I would refer you to the West 28th thread where a significant volume of contractors have been contacted about repayment of loans. Tread carefully, there has been various defence strategies discussed dependable on your circumstances.

all the best.

[woody1]

But not entirely sure if it smelled right

Your instincts are correct. Providing settlement details sounds innocuous enough but it has a familiar whiff about it. There are some real bad actors out there trying to extort loan repayments out of people.

Not sure what to advise but, as Jumper says, tread carefully.

[CDJ]

Thanks both - have spent some time going through the West 28th thread - it's somewhat similar, but different enough that I will post details here for others

Unlike West 28th, this request appears to be coming from the Trustees themselves - Marra Solutions - (or the Trustee company that managed the EBT - Equiom) - they are offering 3 options
1. repay the loan - even though that would be detrimental to the "Beneficiary" - which i thought was in conflict with the Trustee's obligations (which is where it smelled a bit dodge - so i repay the loan, does that mean I am then eligible for a (taxable) Trust distribution?)
2. provide HMRC settlement details - once confirmed they will then waive the loan (with the usual caveats around IHT etc)
3. enter settlement discussions with HMRC
(and 4. if you do nothing they are threatening legal proceedings to recall the loan)

It "feels" like they want to close out the trust, but HMRC are saying you have outstanding tax issues.. or something along those lines. I am going to try and speak to the trustees to get more details and will post back here once I have.

[Diagnose b4 u prescribe]

Thanks both - have spent some time going through the West 28th thread - it's somewhat similar, but different enough that I will post details here for others

Unlike West 28th, this request appears to be coming from the Trustees themselves - Marra Solutions - (or the Trustee company that managed the EBT - Equiom) - they are offering 3 options
1. repay the loan - even though that would be detrimental to the "Beneficiary" - which i thought was in conflict with the Trustee's obligations (which is where it smelled a bit dodge - so i repay the loan, does that mean I am then eligible for a (taxable) Trust distribution?)
2. provide HMRC settlement details - once confirmed they will then waive the loan (with the usual caveats around IHT etc)
3. enter settlement discussions with HMRC
(and 4. if you do nothing they are threatening legal proceedings to recall the loan)

It "feels" like they want to close out the trust, but HMRC are saying you have outstanding tax issues.. or something along those lines. I am going to try and speak to the trustees to get more details and will post back here once I have.

I echo the warning of #woody1 and #Jumper, beware of what may be yet another phishing exercise.

As stated many times in other threads, settlement with HMRC is all about discharging TAX liabilities. That is totally different and has no bearing on whether 'Trustees' or their agents seek to reclassify and recover EBT loans. In short, it's none of their business whether you have settled with HMRC or not.

If you're uncomfortable ignoring them completely, then perhaps your next step might be an SAR? What info do they hold about you and perhaps demand they provide the names of the Trustees they allegedly represent.

You might also want to establish what jurisdication this Isle of Mann company feels it has to pursue you in the UK for alleged loan repayments after hearing nothing from them for 10 years!!

[loanchargehurt]

I would have to slightly disagree with some of the other posts.

The Trustees will need to know that you have settled the liabilities with HMRC before they release the loans, otherwise they may have effectively distributed trust assets depriving HMRC (if a debt is outstanding) and could find themselves liable.

Yes by all means tread cautiously, but I don't see it as unexpected that the Trustees would want certainty that you have settled with HMRC before they release the loan debt.

Their only other option might be to call in the debt in order to meet the liability (the debt is all they hold, no cash), only then can they write-off the loans and close the trust. It may not be sinister at all.

[Wtaf]

When was this so called EBT loan? Could it be statue barred or extinguished by now? Have they proven ownership? I would be careful in calling them. It could be another fishing expedition in the hope people will be fearful and pay when they don't have to.

[CDJ]

When was this so called EBT loan? Could it be statue barred or extinguished by now? Have they proven ownership? I would be careful in calling them. It could be another fishing expedition in the hope people will be fearful and pay when they don't have to.

Hmm - I think this would have been 07-08 timeframe - I'd need to go back and check all of my documentation again, but Equiom (same name; same corp address; email syntax; corp logo etc) was the Trustee for the EBT

[Wtaf]

Yeah bunch of chances, check out the link on West 28th about statue barred loans. Unless you've paid anything, etc you should be OK.

[stillpestered]

Isnt this the case that they just want to shut them down. IHT may come into the picture which could now be big.
I settled way back but CLSO2 took off the IHT on settlement. they should have really enforced the shutdown of everything at that time IMO