Edge EBT thread

[eek]

Q3) Don't know. It's a murky area.

For Q3 even if the money is being treated as income it can still be from a trust and trusts are subject to IHT. Yes it seems unfair but all loan money is Schroders Money and can be multiple things at the same time.

[DealorNoDeal]

Q1) Settlement is final and irrevocable. There's no unwinding it no matter what the outcome of future court cases.

Q2) Yes, it's an error. The loan charge does not apply to loans before Dec 2010.

Q3) Don't know. It's a murky area.

[XContractor]

Wording in Offer to Settle

Firstly apologies if these questions have been answered before or if I'm posting in the wrong place. I'm new here. I have searched but not found the answers.

Briefly, Edge 2006-7. In 2016, paid HMRC sums equivalent to PAYE thinking this would be the end of it. My mistake. Every time I try to finish this it seems HMRC has another hoop for me to jump through. Need to pay interest and formally make offer to settle. I'm willing to do that to be shot of them but am concerned about the wording I'm being asked to sign.

So: Q1 The offer letter has:

"I undertake not to take any action with a view to obtaining repayment from HMRC of any part of the Settlement Amount including but not limited to making a claim under:
(a) Schedule 1AB (Recovery of overpaid tax etc) of the Taxes Management Act 1970; or
(b) common law"

Am I right that HMRC's position has not been tested in law yet? That a future ruling might go against them such that the scheme is deemed to be valid?

Does this wording mean that in the event that HMRC is found to have exceeded its powers in some future court case (in which case the sums I've paid them would have been an over-payment of tax) then I have no way of recovering those sums?

-----

I failed to settle by 30 Sept as I couldn't get HMRC to answer this. I also receive letters about Loan Charge.
Q2: Is this an error as surely this doesn't apply as I left the scheme in 2007?

----

Finally Q3:
HMRC seems to be talking about IHT on loans. If I settle with them, in effect accepting that the 'loans' were 'income' then how can these sums subsequently be treated as loans for IHT purposes?

Any help gratefully received.

[Mayr4ofen]

ok cheers - seems unfair, but then the whole thing was unfair

ok cheers - seems unfair, but then the whole thing was unfair

[DealorNoDeal]

Also, settlements made prior to 16 Mar 2016 are not refundable.

[Mayr4ofen]

ok thanks for the response

[Superfly]

Hi - i was in the Edge EBT pre December 2010 and settled with the HMRC in 2015 as part of a settlement offer
Was anyone same situation ? am i due a refund from HMRC

Thanks

It sounds like you settled an open enquiry, in which case SAM recommendations would not help you, regardless of your open year being pre December 2010.

There is a flow chart that someone shared which would help you understand this.

Post note Flow Chart

[lowpaidworker]

Hi - i was in the Edge EBT pre December 2010 and settled with the HMRC in 2015 as part of a settlement offer
Was anyone same situation ? am i due a refund from HMRC

Thanks

I assume this was paid via an APN. If so then I dont think you are if you are referring the Sir Moorse recommendations

[Mayr4ofen]

Pre 2010 member

Hi - i was in the Edge EBT pre December 2010 and settled with the HMRC in 2015 as part of a settlement offer
Was anyone same situation ? am i due a refund from HMRC

Thanks

[webberg]

Someone has told me that HMRC have said as soon as the settlement is agreed as far as they are concerned the case is closed. No other income tax or inheritance tax to be applied whether the loans are written off or not

who told you?

What qualification/experience did they have?

The statement you make is almost certainly untrue in many circumstances.

Please be careful about listening too and/or believing what the man at the socially distanced pub says.