Loan Charge settlements can be repaid over 5 years

HM Revenue and Customs (‘HMRC’) has revealed that individuals who enter into a settlement agreement with HMRC, to avoid the 2019 Loan Charge, can repay the tax and interest they owe over a five year period if they meet certain criteria.

To qualify for the five year repayment period individuals must; be estimated to receive less than £50,000 taxable income for the tax year 2018/19, and no longer be involved in tax avoidance arrangements.

If an individual is expected to earn £50,000 or more in 2018/19 tax year an individual repayment plan will be created dependent on their circumstances.

To view HMRC’s briefing click here.