HM Revenue & Customs (HMRC) provided further details as to how HMRC will approach settlement of disguised remuneration schemes and implement the loan charge.
Amended legislation for the loan charge became law in July 2020. Following this, on 13 August 2020, HMRC published details about the settlement of disguised remuneration schemes and how the loan charge will be implemented to reflect these amendments.
HMRC stated that there will not be special terms offered for calculating or paying the loan charge.
For disguised remuneration loans that are not within the scope of the loan charge under the amended legislation (for example loans entered into before 9 December 2010), HMRC published updated settlement terms to reflect the amended legislation changes.
For taxpayers who need to pay the loan charge, HMRC will publish the settlement terms in autumn 2020 for any remaining liabilities that arise from open enquiries into disguised renumeration scheme use.
Read an August 2020 report prepared by the KPMG member firm in the UK
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