Shortly before Christmas, Sir Amyas Morse’s independent review of the loan charge and his associated recommendations were published.
The review document runs to 83 pages and sets out in great detail the rationale for the proposed changes. HMRC’s published guidance following on from this issued on 20 December sets out the key actions for the affected groups. Further guidance and revised legislation are expected in early 2020.
In summary the key recommendations which are reflected in HMRC’s guidance are:
The above changes create complexity for taxpayers wishing to file compliant returns by the end of the month and HMRC have indicated relaxation of certain interest and penalties rules. We can provide assistance with confirming the correct disclosures to be made on the tax return.
In addition to being relevant to those who are due to declare the loan charge on their upcoming 2018/19 tax returns, the changes may result in those who have already reached a settlement needing to revisit this but until the relevant legislative changes have been made HMRC will not be able to do this.
If you require any assistance with dealing with HMRC in relation to the loan charge please do get in contact.