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EBT Settlement - Pending Court judgement

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    EBT Settlement - Pending Court judgement

    Hi,

    I have received a final settlement offer from HMRC and seriously contemplting agreeing it.

    The question I have is that, should the pending court case against Loan charges goes against HMRC, do I stand any chance of getting the money I paid to HMRC back?

    I understand a lot depends on the actual judgement but in theory does settlement means end of road and there no way for either party can change it?

    Thanks.

    #2
    Depends on whether they are open or closed years.

    If it is an open/protected year then you may wish to finalise settlement in order to conclude the open enquiry and settle your affairs. This is because even if the judgement outcome is positive, the loan charge obligation may be removed but the open enquiry will still stand until it is concluded.

    If it is a closed year then you will need to seek advice and have a think about whether you wish to settle as you may or may not get your payment back if the judgement yielded an outcome that is favourable to yourself.

    Comment


      #3
      I may have misunderstood the above response, so I'll add my thoughts.

      Settlement is settlement.

      Once completed, you are protected from the loan charge and any other HMRC action. Most settlement agreements do not protect from changes to legislation in the future, but you'd have to hope that this would be rare.

      The quid pro quo is that a change in law or a win in Court which - if applied - would have reduced the settlement value, is inapplicable.

      Any year included in the settlement should be seen as completely finished and no further adjustment (good or bad) can be applied.
      Best Forum Adviser & Forum Personality of the Year 2018.

      (No, me neither).

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