New HMRC video explains loan charge settlement opportunity
With their video, press release and guidance, HMRC is encouraging people with outstanding loan charge liabilities to consider the new settlement opportunity.
The new settlement opportunity follows the government's response to the independent review of the loan charge and HMRC say it could mean substantially less to pay for many taxpayers.
HMRC has started contacting affected taxpayers to make offers under the new opportunity. To encourage people to engage and settle, HMRC is highlighting the following points:
- Most people could see reductions of at least 50% in what they have to pay - support, such as payment arrangements, are available for those who need time to pay anything they owe after the reductions have been applied.
- Around a third of people could be able to settle without having to pay anything at all –however these taxpayers will still need to complete the settlement scheme paperwork so HMRC can formally close their case.
- Overall, the settlement can reduce what a taxpayer owes by up to £70,000 – where the £70,000 cap applies, HMRC will use a simplified calculation to determine the settlement amount, which should leave most affected taxpayers better off.
You can find HMRC’s video and accompanying press release here.
HMRC’s guidance on the new settlement opportunity is on GOV.UK.
Not everyone affected by the loan charge is eligible for this settlement opportunity. We explain more about this in our guidance. If you are eligible, we also have resources to help you understand what HMRC’s offer means, the checks you should make and what steps you may need to take next. We summarise them in our recent news article.
