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HMRC internal manual

Employment Income Manual

Para 23: loan charge relevant step: accelerated payments

Schedule 11 F(No 2)A 2017

Where a person is disputing the liability of a charge under an avoidance scheme but has paid an amount via an accelerated payment notice in respect of any charges under that scheme, that person can apply for the loan charge to be postponed until the dispute is resolved. In order to be able to apply for such treatment, certain conditions need to be met.

Firstly a person must be treated as taking a relevant step under the loan charge provisions, having made a loan or quasi-loan to a relevant person.

An accelerated payment notice or a partner payment notice must have been given in respect of the tax or NICs due on the arrangement under which the loan or quasi-loan which would be the subject of the loan charge was made.

The relevant person must have made a payment in respect of the tax to which the notice relates.

That payment must have been made on or before the relevant date, which is 5 April 2019 or the approved repayment date if the loan is a fixed term loan (see EIM47105).

Under para 23(1)(e) the amount of the loan or quasi-loan which is outstanding for the purposes of the loan charge has to be equal to or less than the amount of the accelerated payment.

If there has been more than one accelerated payment notice in relation to a relevant charge, the amount for the purposes of para 23(1)(e) is taken to be the aggregate of the amounts of each accelerated payment.