Disappearing loans? Disappearing loans? - Page 3
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  1. #21

    Nervous Newbie


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    Quote Originally Posted by luxCon View Post
    Who are the providers, and trustees please? How much is the admin fee?
    I’d rather not say who, but they are mentioned here and there on this website. It’s in the order of USD600.

  2. #22

    Still gathering requirements...


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    Most have already comunicated.

    Mine certainly have.
    I was with AML

  3. #23

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    Quote Originally Posted by pateen View Post
    Most have already comunicated.

    Mine certainly have.
    I was with AML
    And the admin fee to release the loan?

  4. #24

    Still gathering requirements...


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    I take it from this thread that posters may be exempt from the 2019 loan charge:

    1) Where the loan was written off on or before March 16th 2016 (the date the legislation was announced), then it is not subject to the charge.
    2) Where the loan has been repaid, in money, before April 5th 2019 then it will not be subject to the charge.

    However sourcing such evidence is difficult as in most cases the original scheme is liquidated (but the loan still exists as transferred to a trust or other entity)?

    What format/type of evidence does HMRC accept?

  5. #25

    Should post faster


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    Quote Originally Posted by dmuk View Post
    I take it from this thread that posters may be exempt from the 2019 loan charge:

    1) Where the loan was written off on or before March 16th 2016 (the date the legislation was announced), then it is not subject to the charge.
    2) Where the loan has been repaid, in money, before April 5th 2019 then it will not be subject to the charge.

    However sourcing such evidence is difficult as in most cases the original scheme is liquidated (but the loan still exists as transferred to a trust or other entity)?

    What format/type of evidence does HMRC accept?

    Not convinced 1) is correct.

  6. #26

    Super poster


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    Quote Originally Posted by dmuk View Post
    I take it from this thread that posters may be exempt from the 2019 loan charge:

    1) Where the loan was written off on or before March 16th 2016 (the date the legislation was announced), then it is not subject to the charge.
    2) Where the loan has been repaid, in money, before April 5th 2019 then it will not be subject to the charge.

    However sourcing such evidence is difficult as in most cases the original scheme is liquidated (but the loan still exists as transferred to a trust or other entity)?

    What format/type of evidence does HMRC accept?
    I believe that in most cases, HMRC will not agree with either of the points you make.

    1. The loan charge uses its own definition of outstanding loan. That is basically the original loan less repayments made in cash.

    A write off, release, forgiveness etc is not a repayment and will be ignored for the purposes of the loan charge.

    2. A loan repaid in cash will not be chargeable provided that the repayment was not in itself part of a tax avoidance plan and you do not have the money returned nor are likely to.

    Unfortunately therefore the HMRC claims that the charge can be avoided by repaying the loan are false and simply part of the misinformation they feed MPs.
    Best Forum Adviser & Forum Personality of the Year 2018.

    (No, me neither).

  7. #27

    Still gathering requirements...


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    Quote Originally Posted by webberg View Post
    I believe that in most cases, HMRC will not agree with either of the points you make.
    Thanks for the response. The two points I mentioned were from this article

    https://www.wttconsulting.co.uk/sing...ration-to-bite

  8. #28

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    Quote Originally Posted by dmuk View Post
    Thanks for the response. The two points I mentioned were from this article

    https://www.wttconsulting.co.uk/sing...ration-to-bite
    That article reflected thinking at the time it was written.

    The write off of a loan pre March 16 should, in theory, mean no loan to be disclosed. We put this to HMRC who - after a lot of logic somersaults - disagreed.

    We still beleive that it offers a way out of the charge but it will be challenged.

    Repaying in cash is fine, but you will never see the money again.
    Best Forum Adviser & Forum Personality of the Year 2018.

    (No, me neither).

  9. #29

    Should post faster


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    Quote Originally Posted by dmuk View Post
    Thanks for the response. The two points I mentioned were from this article

    https://www.wttconsulting.co.uk/sing...ration-to-bite
    I must admit it does seem to be a poorly written article.

    Quote.

    "There are two exemptions to this. Where the loan was written off on or before March 16th 2016 (the date the legislation was announced), then it is not subject to the charge....."

    webberg can you clarify what your guy says.

  10. #30

    Should post faster


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    How do HMRC find out that any such loan exists in the first place? Do they just email trusts asking for a list of loans and beneficiaries? Presumably a loan could 'disappear' if the HMRC never knew about it in first place?

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