Loan Charge
What is the Loan Charge?
For 2018/19 HMRC introduced a new tax on loans from third parties used as part of tax planning arrangements.
​
The tax is generally charged on the balance of loans outstanding to third parties on 5 April 2019. The loan balance is treated as income and is charged to tax at rates of up to 45%.
What's happening now?
HMRC are currently opening enquiries into everyone who they believe has received a loan as part of a planning arrangement and has submitted a tax return for 2018/19.
​
They will also be writing out to those they believe are caught, but have not submitted a tax return.
What do I need to do?
It is your responsibility to return the Loan Charge on your tax return for 2018/19 accurately and completely. Failure to do so can leave you open to penalties.
​
That said, not all loans received as part of planning arrangements fall within the Loan Charge.
How PTS can help
We are dealing with a significant number of clients whom HMRC believe have a Loan Charge liability. Our specialists have a deep understanding of the legislation and HMRC practice in this area.
PTS can ably assist with:
​
-
Reviewing your liability to the Loan Charge;
-
Submitting or amending a 2018/19 Tax Return
-
Dealing with any HMRC enquiries, assessments or other correspondence.
What Our Clients Say
