It has been announced that the general election delays loan charge review.
The Financial Secretary to the Treasury, Jesse Norman, has written to Sir Amyas Morse asking him to send his report on the loan charge review to the new government after the general election.
The Disguised Remuneration Loan Charge review was commissioned by the Chancellor in September and was due to conclude mid-November.
Up to 50,000 people who have run foul of HMRC over the loan-based avoidance schemes are expected to pay tax dating back up to 20 years by January 2020.
Since the government will be dissolved on 6 November in preparation for the election on 12 December, the report will now be delayed so that Sir Morse can report back to the new government.
It is to be expected, given that the election is so close to the Christmas period, that the government’s response to the review may not now be known until January 2020. Those affected by the loan charge only have until 31 January 2020 to pay the charge or interest and penalties will be due.
The loan charge was introduced to reclaim unpaid tax through schemes that involved loans which have subsequently been deemed as tax avoidance.
Need more information?
We offer a wide range of accounting and tax services which are tailored to suit your unique business. Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.
Our fantastic team at A&C Chartered Accountants are here to help.