Trustees for repaying loan (satisfy loancharge)

[Calmbeforethestorm]

My view is that if you repaid the loans the money was ring fenced by the trustees/lenders so that it would find its way back to you, minus fees, then as Iliketax says, it becomes taxable pretty much as soon as that ring fencing happens.

The OP says that he is advised that HMRC will tax it only when it becomes available.

I have to say that on general principles I would not agree with that position.

I think HMRC will try to tax it as soon as it becomes apparent that it is ring fenced/earmarked and that I see nothing in the brief description given that would enable such a view to be incorrect.

If thats the case then its pretty disingenuous for HMRC and Stride to say that repaying the loans ( and not getting the money back by any devious means) avoids the loan charge.

Who is the OP?

[stonehenge]

If thats the case then its pretty disingenuous for HMRC and Stride to say that repaying the loans ( and not getting the money back by any devious means) avoids the loan charge.

It's an inside a joke.

HMRC: You claim the loans are genuine loans?
Taxpayer: Yes.
HMRC: Like a mortgage or car loan?
Taxpayer: Erm, yes.
HMRC: In that case, you have the option to repay them and avoid the charge. However, just like with a mortgage or car loan, once you've payed them back, the money should be gone forever.

[webberg]

If thats the case then its pretty disingenuous for HMRC and Stride to say that repaying the loans ( and not getting the money back by any devious means) avoids the loan charge.

Who is the OP?

What?

HMRC and Stride don't explain the whole truth?

Who would have thought that?

[Calmbeforethestorm]

It's an inside a joke.

HMRC: You claim the loans are genuine loans?
Taxpayer: Yes.
HMRC: Like a mortgage or car loan?
Taxpayer: Erm, yes.
HMRC: In that case, you have the option to repay them and avoid the charge. However, just like with a mortgage or car loan, once you've payed them back, the money should be gone forever.

Seems you hit on the basis for the LC, if the money was put into a trust for you specifically instead of wages.

However, what if your benevolent employer simply set up a fund for lending money to employees.... then after paying back you could borrow it again could you not.OR have it as remuneration paying tax at the due rate at the time?

OR what if your employer put a sum in for you which you were taxed on at the time. Said sum was then invested by the Trust and grew over a period of time, then you were to borrow some....would this be a LC loan as the growth element was never remuneration at all and the original contribution was taxed?

[stonehenge]

Seems you hit on the basis for the LC, if the money was put into a trust for you specifically instead of wages.

However, what if your benevolent employer simply set up a fund for lending money to employees.... then after paying back you could borrow it again could you not.OR have it as remuneration paying tax at the due rate at the time?

OR what if your employer put a sum in for you which you were taxed on at the time. Said sum was then invested by the Trust and grew over a period of time, then you were to borrow some....would this be a LC loan as the growth element was never remuneration at all and the original contribution was taxed?

One for the experts.

[webberg]

Not for me.

Not interested in speculating on potential tax planning ideas.

[cojak]

And I for one would point and laugh at anyone getting caught by HMRC on that one.