Can expenses be deducted from Loan Charge amounts?

[shevlane]

There are other threads talking about getting expense deductions (of ~10%) agreed by HMRC for use in CLSO2 settlement. In that case, they reduce your taxable loan amount, and send you an updated settlement contract (with the reduced amount).

However, does anybody know if expense deductions can be applied to the *Loan Charge* amounts declared on the 18/19 self-assessment tax return (due by 30th Sep)? And if so, what the mechanics of doing this would be (e.g. provide the net amount, or detail the expenses separately somehow)?

[eek]

There are other threads talking about getting expense deductions (of ~10%) agreed by HMRC for use in CLSO2 settlement. In that case, they reduce your taxable loan amount, and send you an updated settlement contract (with the reduced amount).

However, does anybody know if expense deductions can be applied to the *Loan Charge* amounts declared on the 18/19 self-assessment tax return (due by 30th Sep)? And if so, what the mechanics of doing this would be (e.g. provide the net amount, or detail the expenses separately somehow)?

Not unless HMRC approve the deduction..

[webberg]

However, does anybody know if expense deductions can be applied to the *Loan Charge* amounts declared on the 18/19 self-assessment tax return (due by 30th Sep)? And if so, what the mechanics of doing this would be (e.g. provide the net amount, or detail the expenses separately somehow)?

There is no allowance in the legislation for this, so the answer is "no".

(That said, some HMRC departments appear to be making up their own rules and it may well come down to luck of the draw if you try this. I would not recommend it unless you have an appetite for challenging the inevitable penalty).