Edge EBT thread

[sanchez]

PM Access

I am an ex-Edger, please can I have PM access.. thx

[Radge]

Getting the loans written off

Hi,

Has anyone who is going for the settlement opportunity managed to get their loans written off by their scheme’s trustees?

My loan agreements are with a company called Mapatui Limited, operating “as trustee of the Edge Consulting Limited Employee Benefit Trust” of 24 Finch Road, Douglas, Isle of Man, IM1 2PS.

This company was apparently dissolved in March 2014 (whilst listed under a different address - 6th Floor, Victory House, Prospect Hill, Douglas, IM1 1EQ but presumably the same outfit).
This is my biggest concern over this whole sorry affair because my loans amount to £50k and I would like to have the reassurance that they have been written off. This may have happened automatically when the company was dissolved but I have no idea how this works and whether or not it would have been possible for the company to sell my debt on etc.
Does anyone know what happens to the outstanding loans when the company is dissolved?

[StrengthInNumbers]

Loans do not get dissolved like this and neither do trusts. Trusts have a very different life than companies. Most probably your trust still exists and can ask for loan back whether you have paid HMRC or not.

[AlCapone]

Loans do not get dissolved like this and neither do trusts. Trusts have a very different life than companies. Most probably your trust still exists and can ask for loan back whether you have paid HMRC or not.

What about the 6 year statute of limitations on debt? If neither party has contacted the other about the loans/debt in 6 years then its collection is unenforceable. Secondly, don't trustees have to act in the interest of the beneficiary. Recalling the loans would not be in the beneficiary’s interest.

[meanttobeworking]

What about the 6 year statute of limitations on debt? If neither party has contacted the other about the loans/debt in 6 years then its collection is unenforceable.

I would like to get an answer to this question too. It's been asked before but I'm not sure it was authoritatively answered.

[Dylan]

Surely it doesn't become a debt until the moment it is recalled?

[webberg]

There are a few myths being perpetuated in the above.

The loan made by the trust to you will have a long repayment date, say your expected retirement age. If the loan is not repaid in the meantime, then the trustee probably has no reason to write off/forgive the loan until closer to that time when it becomes obvious it will not be paid.

The trustee is independent of you. You cannot influence his decision as to the fate of the loan.

HMRC cares not whether the loan is written off/forgiven when looking at whether the amount was in fact income.

HMRC has NO ability to influence the trustee.

HMRC may assume that the writing off/forgiving of the loan constitutes a payment from the trust to the beneficiary (you) which is taxable. This is something that I've been trying to get HMRC to make an announcement on (obviously unsuccessfully so far).

Most territories have rules for trusts and especially places like IoM. If the trust company no longer exists, most likely the assets of the trust (the loan) are transferred to the official solicitor (or similar) and are administered from there. If that is the case (and I've not checked) then I suspect that the office has been swamped with loans from broken trusts.

If you are an Edge user, I'm aware that there has been an action group in existence for a while an perhaps they would have better information?

[AlCapone]

Surely it doesn't become a debt until the moment it is recalled?

Surely as soon as I lend you money (and we agree it's a loan) then you're in my debt.

[meanttobeworking]

Surely as soon as I lend you money (and we agree it's a loan) then you're in my debt.

Apt username for that statement... Can't help but read it in a menacing Chicago accent.

[Dylan]

Surely as soon as I lend you money (and we agree it's a loan) then you're in my debt.

If you agree that it doesn't need paying back for 50 years then I would expect to pay it back in 50 years, you not contacting me for 6 years wouldn't change that. At the point of 50 years if I didn't pay I would expect enforcement to become a valid option, and I believe it is that point that the 6 year clock starts ticking.