How does new legislation affect my Tax Avoidance Scheme?

The Finance Act 2017 and the Finance Act (No.2) 2017 (“the Finance Acts 2017”) implements further amendments to the definition of income (for the purpose of charges to income tax) and introduce loan charges for Tax Avoidance Schemes in existence and continuing to operate as at 5 April 2019.  This loan charge will be cumulative and apply to all tax years from 1999, potentially leading to severe financial consequences for any beneficiary of such schemes.

If you are a beneficiary of a Tax Avoidance Scheme which falls within the remit of these new rules, you may find yourself subject to enquiries leading to an Accelerated Payment Notice for 50% of the sum “loaned” via the scheme. 

This charge can extend back to all tax years during which the scheme operated (from 1999) and could lead to huge financial consequences and maybe bankruptcy for beneficiaries of a Tax Avoidance Scheme.

This new legislation is designed to prohibit the use specifically of loans made through a Tax Avoidance Scheme and taxpayers have until 31 December 2018 to disclose such tax schemes to HMRC, after which date from April 2019 they will be liable to loan charges.

At Francis Wilks & Jones we have considerable experience of tax legislation and defending claims by HMRC or liquidators appointed over companies which face such difficulties and we can assist you with any negotiations with HMRC, including accelerated payment notices, any disguised remuneration scheme issues, personal liability notices, VAT security or any other claim by HMRC, including appeals to Tax Tribunals or insolvency claims.

Please call any member of our Tax Disputes team for your consultation now on 020 7841 0390.  Alternatively email us with your enquiry at info@franciswilksandjones.co.uk and we will call you back at a time convenient to you.