Edge EBT thread

[bluemonkey71]

I'll rephrase "How will you get hold of the trustees to get the loan written off?"

Phone or mail. You should have contact details from trust awards etc.

[Dylan]

Agreement with the trustees

I'll rephrase "How will you get hold of the trustees to get the loan written off?"

[bstar1]

I spoke to the HMRC team that are dealing with the IHT side of the Edge EBT. Here is what I asked them and what they told me

Q Does HMRC have a copy of the trust deed for the Edge scheme or have they seen one?
A - No

Q Does HMRC have any contact details for the existing trustees of the Edge scheme
A - No

Q If the loans were to be written off would IHT be payable and if so how much?
A - IHT would be payable at 1% of the loan for each year since the loan was granted until the loan was written off. This is because the Edge scheme is under section 72 of the IHT act 1984 and also because of this there would be no 10 year anniversary charges applicable. The only IHT applicable to the Edge scheme would be exit charges upon write off of the loans at 1% per annum

Q Surely the trustees have to file a trust tax return so HMRC should have the contact details and the trust deed?
A - No the trustees do not need to file a trust tax return as they are offshore.

Q How can HMRC know which section of the IHT act applies if they do not have specific details (the trust deed) of the trust arrangements.
A - no answer.

Q I am permanently living in Australia and have been for the last 3 years. I consider myself to be no longer tax resident or domiciled in the UK so surely IHT will not apply to me?
A - IHT is payable based on the date the loan was awarded and not the date the loans are written off.

So basically I am screwed as the loan relates to the tax year 05/06 - yes 10 years ago so in considering settling I still have to factor in not just the income tax and interest for 10 years but another 10% of the loan value for IHT should the loans be written off. Nobody in their right mind would settle without getting the loan written off due to the risk of the loan getting recalled or changes to the taxation of loans and or trusts in the future which may get backdated.

Hope this clarification helps others calculate their options.

what a mess ...this is not going to happen and will just hang over our heads for years to come. Governments will come and go!

[bluemonkey71]

How would you get the loan written off anyway?

Agreement with the trustees

[Dylan]

How would you get the loan written off anyway?

[Ozbird]

Clarification on IHT

I spoke to the HMRC team that are dealing with the IHT side of the Edge EBT. Here is what I asked them and what they told me

Q Does HMRC have a copy of the trust deed for the Edge scheme or have they seen one?
A - No

Q Does HMRC have any contact details for the existing trustees of the Edge scheme
A - No

Q If the loans were to be written off would IHT be payable and if so how much?
A - IHT would be payable at 1% of the loan for each year since the loan was granted until the loan was written off. This is because the Edge scheme is under section 72 of the IHT act 1984 and also because of this there would be no 10 year anniversary charges applicable. The only IHT applicable to the Edge scheme would be exit charges upon write off of the loans at 1% per annum

Q Surely the trustees have to file a trust tax return so HMRC should have the contact details and the trust deed?
A - No the trustees do not need to file a trust tax return as they are offshore.

Q How can HMRC know which section of the IHT act applies if they do not have specific details (the trust deed) of the trust arrangements.
A - no answer.

Q I am permanently living in Australia and have been for the last 3 years. I consider myself to be no longer tax resident or domiciled in the UK so surely IHT will not apply to me?
A - IHT is payable based on the date the loan was awarded and not the date the loans are written off.

So basically I am screwed as the loan relates to the tax year 05/06 - yes 10 years ago so in considering settling I still have to factor in not just the income tax and interest for 10 years but another 10% of the loan value for IHT should the loans be written off. Nobody in their right mind would settle without getting the loan written off due to the risk of the loan getting recalled or changes to the taxation of loans and or trusts in the future which may get backdated.

Hope this clarification helps others calculate their options.

[IPMAN]

APN Re-calculations

I don't have my letter to hand, can someone please share the APN team's phone number as I would like to understand how to arrived at their totals.

thanks

[administrator]

Ex Edger, please can I have PM access?

Done!

[cazza777]

Done!



PM is the forum Private Messaging system. I have now upgraded your account to give you access. Read this thread, it won't take that long, and you will then see who to contact and what is happening with others who used this scheme.

Ex Edger, please can I have PM access?

[webberg]

Hi - thanks for response but the interest amount does not cover it - i was looking to settle but now just wondering if i should pay the APN and wait for this all to play out

No interest is included in an APN.

Paying an APN is NOT settling.

Only an agreed contract is settling or waiting for a final decision.