HMRC has published a new Spotlight to deal with new, or proposed tax products, which are intended to circumvent the new rules on the taxation of loans under the disguised remuneration rules in Part 7A of the Income Tax (Earnings and Pensions) Act 2003. The new rules will apply in respect of certain loans which are outstanding on 6 April 2019.
The Spotlight sets out HMRC’s view that such structures do not work and that the new rules will catch any such arrangements. HMRC also states that it will consider utilising the GAAR in such circumstances.
A copy of Spotlight 36 can be found here.