HMRC has updated its loan
charge guidance to reflect the changes made by FA 2020 including on
voluntary restitution refunds.
Following recommendations made by Sir Amyas Morse’s independent
review, FA 2020 amended the loan charge provisions so that they only apply to
loans taken out on or after 9 December 2010. FA 2020 also ensures that the loan
charge will not apply to users of loan schemes between 9 December 2010 and 5
April 2016 who provided a reasonable disclosure of their schemes in their tax
returns and where HMRC failed to take action by 6 April 2019.
HMRC has updated its guidance following the outcome of the
review, to include information
about voluntary restitution refunds, ie refunds to taxpayers who settled
with HMRC in respect of loans to which the loan charge, as a result of the FA
2020 changes, does not apply.
HMRC has also updated its guidance on the settlement of
disguised remuneration loans that are not subject to the loan charge, to
reflect the new
August 2020 settlement terms. In addition, HMRC has published two new
policy papers:
explaining how HMRC’s debt management processes work,
including: the support HMRC can give to taxpayers to help them pay the tax debt
that they owe, what HMRC can do to get the tax owed if taxpayers refuse to pay,
and detailed examples of how the department agrees time to pay arrangements.
HMRC has updated its loan
charge guidance to reflect the changes made by FA 2020 including on
voluntary restitution refunds.
Following recommendations made by Sir Amyas Morse’s independent
review, FA 2020 amended the loan charge provisions so that they only apply to
loans taken out on or after 9 December 2010. FA 2020 also ensures that the loan
charge will not apply to users of loan schemes between 9 December 2010 and 5
April 2016 who provided a reasonable disclosure of their schemes in their tax
returns and where HMRC failed to take action by 6 April 2019.
HMRC has updated its guidance following the outcome of the
review, to include information
about voluntary restitution refunds, ie refunds to taxpayers who settled
with HMRC in respect of loans to which the loan charge, as a result of the FA
2020 changes, does not apply.
HMRC has also updated its guidance on the settlement of
disguised remuneration loans that are not subject to the loan charge, to
reflect the new
August 2020 settlement terms. In addition, HMRC has published two new
policy papers:
explaining how HMRC’s debt management processes work,
including: the support HMRC can give to taxpayers to help them pay the tax debt
that they owe, what HMRC can do to get the tax owed if taxpayers refuse to pay,
and detailed examples of how the department agrees time to pay arrangements.
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