Originally posted by webberg
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I know I've settled, but it would not surprise me if they tried to charge me twice. This is pretty much what they're doing with s223. I didn't quite understand it in my previous posts, but what they want me to do is repay the company £170k (the PAYE part of the EBT) which will trigger a corporation tax bill of £32k OR I can add £170k to my salary for 2019 and suffer PAYE/NI. The first option is the cheapest, but it's another big tax hit.
ETA: My tax advisors just sent this through.
It is our recommendation that, following settlement with HMRC, the debts be written off and the trust wound up, to offer finality on the matter – as discretionary trusts, if the debts are not written off these remain as an asset of the trust and the trust will be subject to 10 year anniversary IHT charges. Furthermore, while the trusts remain in existence, they may incur future costs depending on any changes in tax legislation.
HMRC’s settlement agreements also usually include a clause which requires the trusts to be wound up within a specified time frame.
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