The Labeikis and Kang Kim joint claim against HMRC has been a lengthy dispute relating essentially to the correct legal interpretation of the loan charge legislation.

The actual tax due has not even been determined by HMRC but the claimants had all used a disguised remuneration scheme which transferred money to various trusts set up in Belize in 2010. These were used between December 2010 until April 2019 in different guises in HMRC’s opinion to avoid tax on payments for employment through to loans.

As a result they were dragged into the loan charge when the legislation which retrospectively will capture the Belize schemes.