Loan Repayment to Dissolved Companies

[Bemi]

A loan made by a company is an asset of that company.

Thanks webberg. Much appreciated. So stressed about this unexpected turn of events (maybe it should have been obvious, but apparently it wasn't obvious to my tax advisor for the last two years)

If the company is subsequently dissolved/liquidated/struck off, the assets will go to the shareholders.

After dissolution the assets go to the state, so I am assuming the transfer of loans happens during liquidation?

I am struggling to find any information on how the transfer or sale of loans work in this process, perhaps because I don't know the right language to use/questions to ask. (I am not being lazy, I have been researching for nearly 9 hours straight and will continue to do so next day off I have).

Can you advise on where to find information on this process? What

[webberg]

A loan made by a company is an asset of that company.

If the company is subsequently dissolved/liquidated/struck off, the assets will go to the shareholders.

Those shareholders will either hold the assets on their personal account or may indeed move them into some other vehicle.

A loan will not disappear just because the lender is no longer a coherent legal personalty.

[Bemi]

Any update since the last posts on here?

Hi,

I am in the same position.

Trying to understand if a dissolved company (in my case Winchester) can come after me for the loan.

Any updates?

[BeHineU]

Hi, I'm in exactly the same situation as you. I'm wanting to understand who now 'owns' these loans. It's not sufficient to assume that the loans are now void just because the companies are seemingly dissolved. I'm making enquiries myself and will let you know any useful information, if I can ask that you do the same?

The more information we share can only help us all!!!

"It seems a loan belongs to a company and if it is no longer in existence then the debt no longer exists. Also, it appears if a debt is over 6 years old it becomes statute barred and cannot be pursued."

Good Luck to us all

[asdfgh]

Hello
I contracted through White Collar and obtained loans from the below companies. My question is as both companies have been “dissolved” will this fact make my loans void i.e. I will never be asked to repay the loans.

Thanks for any help


ON TARGET LIMITED (126425C) – dissolved 12 August 2015
Company registered at 1ST Floor, 1 Church Street, Douglas, Isle of Man, IM1 2AG
https://opencorporates.com/companies/im/126425C

HJP Limited (125311C) - dissolved 13 July 2012
Company registered at 2nd Floor, 5 Parliament Square, Castletown, IM9 1LA, Isle of Man
https://opencorporates.com/companies/im/125311C

Hi, I'm in exactly the same situation as you. I'm wanting to understand who now 'owns' these loans. It's not sufficient to assume that the loans are now void just because the companies are seemingly dissolved. I'm making enquiries myself and will let you know any useful information, if I can ask that you do the same?

[CDJ]

Hello,
Sorry for the delay in replying as I had to find the paperwork for the loans.
With regards to the tax owed, I want to settle and move on but I would like to understand if I would still be liable for the loans.

For the HJP Ltd loan agreement it states that it is between “HJP Ltd” and me. With “HJP Ltd” being the “the company” and myself as the “borrower”.

For the “On Target” loan agreement (Business Development Fund/ Speciality Debt Facility) it states the agreement is between “On Target Limited” and me. With “On Target Limited” being “the lender” and myself as the “borrower”.

But it does state “The lender may assign the benefit of this deed at his discretion without the consent of the borrower” – I am not sure if this means the debt could be passed to a third party to collect the repayments if the company no longer exists – any ideas?

So does this mean as the loans came from companies which have now been liquidated the loans can no longer be called upon to be repaid in the future?

Many thanks

Hmm.. unfortunately, am not familiar with that sort of set-up from White Collar - you're right to want to get that side of things clarified though.. HMRC will likely take the view that the loan arrangement was a sham and will simply disregard any paperwork; problem is, the owner of your "debt" may not see it that way.. its a similar issue with those of us who were issued loans via Trusts.. settled with HMRC, but the Trusts still consider the issue open. Unfortunately, the only person who can likely give you definitive help is a professional. Maybe reach out to Big Group to see if they are covering your arrangement??

[BeHineU]

BehinU - Did the loan come a company or from a Trustee appointed by the company? (the standard operating procedure for these schemes was to use a trustee).. If that's the case, whether the original company has been dissolved is irrelevant - your "debt" is to the Trust.

Check your paperwork.

To be honest though - if you are caught up in a scheme, whether you have an outstanding loan is the least of your worries. (For disclosure - I was with White Collar pre 2010 through the EBT years and decided to settle my tax position via the CLSO)

Hello,
Sorry for the delay in replying as I had to find the paperwork for the loans.
With regards to the tax owed, I want to settle and move on but I would like to understand if I would still be liable for the loans.

For the HJP Ltd loan agreement it states that it is between “HJP Ltd” and me. With “HJP Ltd” being the “the company” and myself as the “borrower”.

For the “On Target” loan agreement (Business Development Fund/ Speciality Debt Facility) it states the agreement is between “On Target Limited” and me. With “On Target Limited” being “the lender” and myself as the “borrower”.

But it does state “The lender may assign the benefit of this deed at his discretion without the consent of the borrower” – I am not sure if this means the debt could be passed to a third party to collect the repayments if the company no longer exists – any ideas?

So does this mean as the loans came from companies which have now been liquidated the loans can no longer be called upon to be repaid in the future?

Many thanks

[regron]

BehinU - Did the loan come a company or from a Trustee appointed by the company? (the standard operating procedure for these schemes was to use a trustee).. If that's the case, whether the original company has been dissolved is irrelevant - your "debt" is to the Trust.

Check your paperwork.

To be honest though - if you are caught up in a scheme, whether you have an outstanding loan is the least of your worries. (For disclosure - I was with White Collar pre 2010 through the EBT years and decided to settle my tax position via the CLSO)

Did you have any closed years included in your CLSO settlement where they agreed they would wavier them ? If so, are you aware that they may yet come back for them as part of the proposed 2019 loan charge legislation ?

[CDJ]

Hello
I contracted through White Collar and obtained loans from the below companies. My question is as both companies have been “dissolved” will this fact make my loans void i.e. I will never be asked to repay the loans.

Thanks for any help


ON TARGET LIMITED (126425C) – dissolved 12 August 2015
Company registered at 1ST Floor, 1 Church Street, Douglas, Isle of Man, IM1 2AG
https://opencorporates.com/companies/im/126425C

HJP Limited (125311C) - dissolved 13 July 2012
Company registered at 2nd Floor, 5 Parliament Square, Castletown, IM9 1LA, Isle of Man
https://opencorporates.com/companies/im/125311C

BehinU - Did the loan come a company or from a Trustee appointed by the company? (the standard operating procedure for these schemes was to use a trustee).. If that's the case, whether the original company has been dissolved is irrelevant - your "debt" is to the Trust.

Check your paperwork.

To be honest though - if you are caught up in a scheme, whether you have an outstanding loan is the least of your worries. (For disclosure - I was with White Collar pre 2010 through the EBT years and decided to settle my tax position via the CLSO)

[cojak]

Hello
I contracted through White Collar and obtained loans from the below companies. My question is as both companies have been “dissolved” will this fact make my loans void i.e. I will never be asked to repay the loans.

Thanks for any help


ON TARGET LIMITED (126425C) – dissolved 12 August 2015
Company registered at 1ST Floor, 1 Church Street, Douglas, Isle of Man, IM1 2AG
https://opencorporates.com/companies/im/126425C

HJP Limited (125311C) - dissolved 13 July 2012
Company registered at 2nd Floor, 5 Parliament Square, Castletown, IM9 1LA, Isle of Man
https://opencorporates.com/companies/im/125311C

See here http://forums.contractoruk.com/hmrc-...te-collar.html

And to the OP - You'll still be liable for the tax.

[BeHineU]

Hello
I contracted through White Collar and obtained loans from the below companies. My question is as both companies have been “dissolved” will this fact make my loans void i.e. I will never be asked to repay the loans.

Thanks for any help


ON TARGET LIMITED (126425C) – dissolved 12 August 2015
Company registered at 1ST Floor, 1 Church Street, Douglas, Isle of Man, IM1 2AG
https://opencorporates.com/companies/im/126425C

HJP Limited (125311C) - dissolved 13 July 2012
Company registered at 2nd Floor, 5 Parliament Square, Castletown, IM9 1LA, Isle of Man
https://opencorporates.com/companies/im/125311C