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HMRC letter regarding loan charge

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    HMRC letter regarding loan charge

    Hi

    My wife received what appears to be a standard/generic letter regarding the loan charge review, with various pieces of advice on what to do next etc.

    However. . . . .

    This is completely out of the blue, she has never received any such letter in the past, and to go a step further we don't even know what the "loan charge" is (apologies for being a complete numpty)?

    For background I did about 10 years as a contractor (have been permanent for the last 10 years) mostly via ltd company in the early years, then via an umbrella, with 2 years under what I guess the HMRC would class as a scheme (Consulting Overseas, Actinium) in 2004/06 with my wife as a shareholder in 2 x offshore BVI companies. However I don't recall it being any kind of loan scheme, we were paid dividends IIRC. My wife is full time nurse and has only ever had to complete SA for the years 04/06 and has been permanent for the NHS all her life.

    Could HMRC just have sent this letter out by mistake, or could it be that how I worked back in 2004 was some kind of loan scheme to which they are referring to?

    I know previous schemes by Consulting Overseas (Sandfield?) have been subject to HMRC investigation but I'm not aware of anything related to Actinium.

    Any advice (and an explanation of what a "loan charge" is would be most appreciated.

    Regards

    #2
    You're asking in the right place. Knowledgeable folk will be along soon.
    Down with racism. Long live miscegenation!

    Comment


      #3
      LCAG site could be your starting point

      2019 Loan Charge Action Group (LCAG) - Loan Charge Action Group

      Actinium is mentioned in these forums. Do a search to find reference, there aren't a lot and while it is a scheme, not sure it's a loan scheme. That said, quite often inventive wording is used to disguise repayment methods to be more reputable. Shares, dividends, bonuses may not be what they seem if you start to dig.

      Comment


        #4
        Originally posted by NasserAlK View Post
        Hi

        My wife received what appears to be a standard/generic letter regarding the loan charge review, with various pieces of advice on what to do next etc.

        However. . . . .

        This is completely out of the blue, she has never received any such letter in the past, and to go a step further we don't even know what the "loan charge" is (apologies for being a complete numpty)?

        For background I did about 10 years as a contractor (have been permanent for the last 10 years) mostly via ltd company in the early years, then via an umbrella, with 2 years under what I guess the HMRC would class as a scheme (Consulting Overseas, Actinium) in 2004/06 with my wife as a shareholder in 2 x offshore BVI companies. However I don't recall it being any kind of loan scheme, we were paid dividends IIRC. My wife is full time nurse and has only ever had to complete SA for the years 04/06 and has been permanent for the NHS all her life.

        Could HMRC just have sent this letter out by mistake, or could it be that how I worked back in 2004 was some kind of loan scheme to which they are referring to?

        I know previous schemes by Consulting Overseas (Sandfield?) have been subject to HMRC investigation but I'm not aware of anything related to Actinium.

        Any advice (and an explanation of what a "loan charge" is would be most appreciated.

        Regards
        Just about anyone who was in a tax avoidance 'scheme' has or will be receiving one of these letters. HMRC are shaking the tree and seeing what falls out.

        If you are certain you have no loan charge exposure, you can ignore it. Id suggest you do not even converse with HMRC about it.

        If you have any loan charge exposure, seek out the Loan Charge Action Group for advice.
        I couldn't give two fornicators! Yes, really!

        Comment


          #5
          Originally posted by BolshieBastard View Post

          If you are certain you have no loan charge exposure, you can ignore it. Id suggest you do not even converse with HMRC about it.

          If you have any loan charge exposure, seek out the Loan Charge Action Group for advice.
          Pretty much what he said.

          Just be sure you are asking the right people the right thing.

          LCAG do some sterling work and have knowledge of many schemes and are very politically active.

          People like us are tax specialists. We understand the technical background to the schemes and the HMRC position and are active in resisting HMRC up to and including Tribunal.
          Best Forum Adviser & Forum Personality of the Year 2018.

          (No, me neither).

          Comment


            #6
            Originally posted by BolshieBastard View Post
            Just about anyone who was in a tax avoidance 'scheme' has or will be receiving one of these letters. HMRC are shaking the tree and seeing what falls out.

            If you are certain you have no loan charge exposure, you can ignore it. Id suggest you do not even converse with HMRC about it.

            If you have any loan charge exposure, seek out the Loan Charge Action Group for advice.
            LCAG will not give tax advice. They act to get the Loan Charge changed (ie be prospective not retrospective). They have a forum and you can find other people in the same situation as yourself. I do advise joining them. Additionally you need to seek tax advice. Anyone who gets a letter is on the HMRC target list.

            Comment


              #7
              Originally posted by BolshieBastard View Post
              Just about anyone who was in a tax avoidance 'scheme' has or will be receiving one of these letters. HMRC are shaking the tree and seeing what falls out.

              If you are certain you have no loan charge exposure, you can ignore it. Id suggest you do not even converse with HMRC about it.

              If you have any loan charge exposure, seek out the Loan Charge Action Group for advice.
              +1

              Comment


                #8
                Many thanks

                Comment


                  #9
                  Originally posted by NasserAlK View Post
                  Many thanks
                  Obviously the CA teams don’t receive correspondence updates from thier other depts?
                  Recently changed address details and they still sending LC letters to old address, fortunately forwarded.
                  I updated on PTA and company records...

                  Comment


                    #10
                    Hi

                    I am in exactly the same boat as the OP and received one of the new letters from HMRC in the last couple of weeks advising to make a SATR and ensuring you declare any loans from previous years. My wife received one too.

                    The Actinium scheme was, as far as I am aware (and I've done a lot of research) never a loan based scheme. I got enquiries opened for two years I was in it and so did my wife (she also received dividend payments). Both of us had the DOTAS numbers on our returns from that period.

                    I suspect it is a fishing trip by HMRC and they are sending letters to everyone on their list of declared members of DOTAS schemes. They seem to be doing this regardless of whether the scheme used loans or not. However, I would expect them to be doing this not just through incompetence or laziness but also so they can use it in the future if they decide they need to.

                    I did actually call the number on the letter and the person on the other end was a generic help desk person who had a very flimsy understanding but repeatedly said that if it was anything before December 9th 2010 then I didn't;t need to do anything!! Seeing as I've been a permie since that date I assume I have nothing to worry about. However, he did suggest to email the CA team directly as they were the specialists - I'm still mulling that over.

                    On the more general topic of Actinium - it never gets mentioned in these forums (last posts were from many years ago and no one currently seems active). I know the enquiries were opened back before 2010 but I'be had absolutely zero correspondence form HMRC since then (over 10 years!!!) but I have assumed they are dealing with the schemes they feel they have most success at winning first.

                    The enquiry letters related to 2005-7 tax years and were under COP8 and were into 'dividends or other payments relating to your employment with Actinium Ltd.'. They stated they would not be asking me for any documents at that stage and never have since. If anyone has any more up to date correspondence or insights into HMRC's positioning with regard to Actinium I'd be very interested.

                    Please either post here or PM me if you were in it.

                    Comment

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