HM Revenue & Customs (HMRC) have been accused of keeping people who face the controversial “loan charge” in the dark after settlements were put on hold pending a review.

The loan charge, which came into effect on 6 April applied to anyone who used disguised remuneration schemes. The legislation added a 45% non-refundable charge on all loans advanced through the schemes – some of them dating back 20 years – unless the individual had agreed with HMRC to settle their tax affairs by 5 April.

To date, the Treasury has only said that it would “set out further details in due course.” This is less than reassuring and leaves an estimated 50,000 people subject to the loan charge in limbo.

This is surely a lesson on how not to enact new tax legislation!

If you need help with the “loan charge” or any other particular tax quirk, please contact a member of our Private Client Team on 01788 539000.