Loan Charge – Settlement Agreement

Q. Good day I am affected by the loan charge & recently came across the fact that any information pertaining to contract loans had to be submitted by Sept 2018. I have since contacted the HMRC and I am will be providing them with details of my contractor loans. However my concern is that the response I received does not guarantee that the HMRC will not consider my situation before 5th April 2019 & therefore I cannot benefit from the settlement agreement. Can you please advise.

A. Due to the complex nature and the varied types of Tax Avoidance Schemes that have been present in the marketplace, it is extremely difficult to comment on individual schemes without a full review of the original planning advice and relevant paperwork. As the cost of this is potentially prohibitive and it still may result in an unfavourable outcome, we would always recommend contacting the scheme provider as a priority as they will understand their product.

However, where a settlement opportunity has not been entered into before 5 April 2019, the charge will come into effect on that day.


  • Tom Redfern says:

    If your scheme provider 8s not going to help, seek out the great folks at WTT Big Group. They have detailed analysis of many different schemes and will likely be able to give you an answer.

  • HMRCVictim says:

    Please join LCAG for support, chat, connections with local people who are in the same situation as you, peer recommendations for advice and assistance in lobbying your MP to change this legislation. LCAG are also crowd-sourcing funding for a Judicial Review which will show that HMRC cannot enforce the Loan Charge.

    • HMRCVictim says:

      Note – LCAG is run by volunteers who donate their time for free. All money donated is used to assist in lobbying the government to change the law.

  • Jack1 says:

    As long as you come forward and provide your loan details to HMRC before 5th April, you can obtain a settlement under clso2 for the general tax and ni they think is due. I applied before Sept 18 and havent received the figures back yet, they will come back with settlement by Sept 19. Also, recommend joining LCAG.

  • Anna G. says:

    Please speak to a reputable tax adviser (I am with WTT) who can advise you of all the options open to you.

    HMRC have recently stated that no one who applies for settlement before 5th April will be disadvantaged if they haven’t received settlement figures back before the loan charge trigger date. I don’t consider settlement under CLSO2 as final and so won’t be taking it up.

    For information and support do think about joining LCAG, it’s a dreadful shock when you first find out so please do talk to someone about it. Good luck.

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