Quantuma's Chris Newell looks at what 2019 will hold for those affected by the loan charge?
The implementation of the loan charge in April 2019 will have significant consequences for individuals with outstanding loans in relation to tax schemes.
The charge relates to those individuals who may have used ‘disguised remuneration schemes’, such as an Employee Benefit Trust in order to reduce income tax. Come the 5th of April 2019, if a loan in relation to a tax planning scheme is still outstanding then the beneficiary will need to put this on their personal tax return and pay income tax on the loan. This will go back to 1999!
This will affect a huge number of people who have entered into these schemes who will now face having to pay over huge amounts to HMRC.