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Disappearing loans?

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    #31
    Originally posted by me206et View Post
    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.
    I can.

    The original legislation when presented was , if you recall, included in a Finance Bill and then withdrawn because of the General Election. After that, it was reintroduced in substantially the same form.

    There was a thought at the time that the delay in announcing the loan charge measure and its subsequent withdrawal and later inclusion, left open a window in which loans which no longer existed could be excluded.

    That may still be the case.

    When the article was written, we were of the view that loans which did not exist had a better than even chance of being excluded from the charge as on a strict reading, it could never apply.

    We have since had a number of conversations with HMRC over that point and they are firmly of the view that a loan that has not been "repaid" is included, even where nobody any longer has any claim on the borrower.

    That is a stance that we disagree with for a number of practical, commercial and legal reasons. It is a position that we will certainly be putting to our clients and explaining our view and the consequences should it be incorrect.

    We remain of the view that a non existent loan at the trigger date is very difficult to tax and we will be arguing that.

    It would be sensible however in the light of information on how HMRC plan to interpret the law, to be less bullish, especially where the loan write off was a contrivance.

    I very much stand by my man who wrote the piece in good faith based on our view at that time.
    Best Forum Adviser & Forum Personality of the Year 2018.

    (No, me neither).

    Comment


      #32
      Postponing

      Anyone know what this means ?

      https://www.gov.uk/guidance/disguise...he-loan-charge

      I guess you use this is you have already settled an APN relating to a loan. Can this be used for any other reason ??

      Comment


        #33
        Ah the postponement - You''ll find references to that old chestnut elsewhere

        Comment


          #34
          Originally posted by QCApproved View Post
          Ah the postponement - You''ll find references to that old chestnut elsewhere
          which effectively means nadda

          Comment


            #35
            Originally posted by webberg View Post
            We remain of the view that a non existent loan at the trigger date is very difficult to tax and we will be arguing that.
            That makes perfect sense in isolation but I do not understand why it is something to get excited about. If a loan is written off, the write-off gives rise to income tax on the amount written off, does it not? This is covered by ITEPA 2003 s188.

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