Spotlight 48: Loan Charge settlement scam

18 February 2019

 

  • A deed of release is not needed to settle contractor loan schemes
  • Advisers are charging customers a fee for deeds they do not need
  • HMRC have updated the settlement pack to clarify the situation

HMRC has been made aware that their Inheritance Tax (IHT) section of the contractor loans settlement pack was being misunderstood. The misleading wording was allowing advisers to charge a fee to obtain a deed of release.

HMRC have now altered the settlement pack to state ‘I wish to have IHT included in the settlement on the basis of the loans being written off or released within 30 days of a settlement being agreed. No further evidence will be required by HMRC of this. If the loans are not written off or released within 30 days of a settlement being agreed, I will contact HMRC so that the IHT position can be reviewed.’

To view our previous Spotlight news article click here.

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