Changes to the loan charge following the Morse review

The government has accepted many of the recommendations of Sir Amyas Morse’s independent report on the loan charge. The loan charge will now only apply to loans made after 9 December 2010 (the date the disguised remuneration rules were announced) rather than loans made since 6 April 1999. Loans made between 9 December 2010 and 5 April 2016 will not be caught by the charge if they were fully disclosed in tax returns and HMRC took no action to open an enquiry or raise any assessment. If the loan charge no longer applies HMRC will refund voluntary restitution payments made under any settlements reached since March 2016. If the loan charge still applies taxpayers may opt to spread the charge over three years to mitigate the impact of the full amount being brought into charge at higher rates and the favourable payment terms offered for individuals in lower income brackets...