Legislation was enacted to counter specific forms of tax-avoidance using arrangements which were caught by the rules on ‘disguised remuneration’. The government has since brought forward a set of disclosure rules which require taxpayers to inform HMRC of any such arrangements, to which they were parties and settle any income tax and National Insurance Contributions (NICs) due via a one-off charge referred to as the ‘Loan Charge’. Following a review conducted by Sir Amyas Morse, some amendments were made to the Loan Charge proposals.
A summary of the key points that affected taxpayers need to note are as follows:
The next steps that taxpayers should take will vary depending on their personal circumstances, and we would be happy to assist clients where possible. For further information, please contact Caroline Harwood, John Cassidy, Russell Kuma, Liam Hawkins or your usual contact at Crowe.