⚠️ This is a news story and may not be up to date. You can find the date it was published under the title. Our Tax Guides feature the latest up-to-date tax information and guidance.
Thinking of making a loan charge spreading election?
Given the current unprecedented jobs and income situation, it is likely that some people could now pay less loan charge by way of the three-year spreading provisions, because one of those three years will be 2020/21.
But if taxpayers opt to spread, would HMRC try to open tax enquires or assessments to force a settlement of the underlying tax liability – thereby collecting the tax ‘saved’?
In an article written for AccountingWeb, we set out our thoughts as to why we think the risk of them doing this is low: The pros and cons of loan charge spreading.
Contact: Meredith McCammond (click here to Contact Us)
(First published: 04/09/20)