Loan charge repayment guidance issued by HMRC

04 Mar 2020

HMRC has published details of proposed legislation for administering refunds to taxpayers who made voluntary payments prior to settling the loan charge.

The loan charge, which came into effect on 6 April this year, added a 45% non-refundable charge on all loans advanced through schemes, unless the individual had agreed with HMRC to settle their tax affairs by 5 April. The charge affects at least 50,000 people who used loan-based avoidance schemes.

Following last year's review into the charge, the government agreed that HMRC should repay certain voluntary payments made following the announcement of the loan charge in March 2016.

HMRC has now published the draft scheme documents setting out the eligibility criteria for claiming a refund. The criteria includes the process for repaying or waiving payments and how variations to settlement agreements, and any consequent refunds, will be calculated.

However, the tax authority said that refunds can only be issued after Finance Bill 2019/20 has received Royal Assent.

If you would like to discuss the matter further, please do not hesitate to contact us.

Register for our newsletter

Once a month we'll send you an email packed full of essential business news and handy tax tips to help save you money.

Register

Weston-super-Mare

34 Boulevard
Weston-super-Mare
Somerset
BS23 1NF

01934 415022

Cheddar

Bath Street
Cheddar
Somerset
BS27 3AA

01934 743274


Home | Contact us | Accessibility | Disclaimer & Privacy Policy | Help | Site map |

© 2020 Four Fifty Partnership. All rights reserved.

We use cookies on this website, you can find more information about cookies here.


Registered to carry on audit work in the UK by the Institute of Chartered Accountants in England and Wales. Details about our audit registration can be found at auditregister.org.uk under the reference C001092613.

"four fifty partnership" is a trading name of Four Fifty Partnership Limited. Registered in England. Company Number 5032008. Registered Office 34 Boulevard, Weston super Mare, Somerset BS23 1NF.

Directors: Richard Acreman BSc CTA, Joy Boswell FCCA FCA, Peter Ison BA FCA and Nick Gravell FCCA FCA.

Professional Indemnity Insurers: Nexus Underwriting Limited 52-56 Leadenhall Street, London EC3A 2EB (Policy Number: BC6210PIA194). The territorial coverage is worldwide excluding professional business carried out from an office in the United States of America or Canada and excludes any action for a claim brought in any court in the United States of America or Canada.