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:
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Reviewing your liability to the Loan Charge;
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Submitting or amending a 2018/19 Tax Return
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Dealing with any HMRC enquiries, assessments or other correspondence.
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