2019 EBT loan charge

[Virginia]

Dear all

This concerns the proposed 2019 EBT loan charge. I have a couple of questions:

- does this new loan charge override previously time barred returns? The statutory time limits legislation seems to be in conflict with the proposed legislation.

- normally tax is incurred in the UK by either being a tax resident (and being liable to tax on one's worldwide income) or for non-tax residents by virtue of having UK sourced income. For a taxpayer who is now non-tax resident is that income being taxed in 2019 treated as being sourced in the UK?

Kind regards
Virginia

[bd6759]

1. Not sure what you mean. This is a new liability that hasn't arisen yet, so can't be out of time.

2. The loans will have been granted whilst resident, and therefore caught by the charge.

[Virginia]

What I mean is that you have one piece of legislation that provides that time limits apply. And then you have an additional (proposed) piece of legislation which then opens closed years. The two pieces of legislation work in conflict.

[bd6759]

One pirce of legislation will charge tax if conditions are met. The other piece imposes a time limit for assesing that tax, They work in harmony.

The new legilsation does not reopen closed years.