Clarification of settlement terms for disguised remuneration liabilities

HMRC has issued updated guidance to clear up a misunderstanding about the arrangements for settlement of disguised remuneration liabilities for loan charges in relation to inheritance tax (IHT).

HMRC settlement terms were published in November 2017 to encourage users of these schemes to settle their tax affairs before the loan charge comes in, on 5 April this year.

The tax authority now says it has become aware that wording about IHT in the settlement pack scheme users need to complete is being misunderstood, particularly in instances where contractor loans schemes have been used.