HMRC has issued Spotlight 36: Disguised remuneration: schemes claiming to avoid the new loan charge. This features schemes which attempt to avoid the new disguised remuneration loan charge to be introduced in 2019.
Draft legislation in Finance Bill 2017 provides for a new tax charge on all disguised remuneration loans still outstanding at 5 April 2019.
HMRC have become aware of some promoters who claim to have come up with schemes to avoid this loan charge.
In this Spotlight HMRC state that:
- In their view such schemes don’t work: the only way to avoid the loan charge is by repaying the loan or settling with HMRC.
- Any repayments connected to a new tax avoidance arrangement will be ignored and the loan charge will still apply.
- They will consider applying the GAAR to such transactions.
An email address is provided for taxpayers who wish to get out of such schemes and who don’t already have a contact.
Links
Our guides:
Anti-avoidance: HMRC's spotlights
HMRC’s Spotlight 36 can be found here
Are you enjoying our content?
Thousands of accountants and advisers & their clients use rossmartin.co.uk as their primary TAX resource.
Register now to receive our FREE weekly SME Tax News update, discounts and briefings