HMRC’s refusal of loan scheme claim was lawful

The claimant had been provided with loans from an employee trust in 2003. Under the loan charge they would have been liable to income tax and National Insurance contributions in respect of the proportion of the loans outstanding on 5 April 2019. The claimant chose to enter into a settlement agreement - signed on 28 March 2019 - with HMRC and which was executed by HMRC on 3 April 2019. The claimant had to sell a property on which one of the loans was secured to pay the sums due under the settlement. However the trustees would only permit this if the claimant repaid the loans. This was done on 29 March 2019. The trustees then paid those sums to HMRC and loaned the remaining amounts in the employee trust back to the claimant.

The claimant then made a claim under the disguised remuneration repayment scheme....