.png)
.png)
Worth settling?
Key points
- HMRC’s new settlement opportunity is the latest chapter in its challenge against ‘disguised remuneration’ arrangements.
- It is an opportunity to agree the tax treatment with HMRC and achieve closure without litigation.
- Careful analysis of the facts is required to determine whether settlement is appropriate and which calculation basis should apply for each taxpayer.
- There is a strict application deadline of 31 July 2022 which includes submitting calculations to HMRC.
On 11 April 2022 HMRC released a new settlement opportunity (RTSO) for participants in tax avoidance arrangements commonly known as remuneration trusts (RTs) or creditor protection trusts (tinyurl.com/w7twnpht).
We understand these arrangements were chiefly promoted by one prominent adviser and have been implemented by a significant number of companies owner-managed businesses and self-employed sole traders or partnerships. They typically involve a contribution of funds to a trust followed by loans to directors/shareholders or business owners...
Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
