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<p>The charge on disguised remuneration (DR) loans is targeted at artificial tax avoidance
schemes where earnings were paid in the form of loans, often made by an offshore third
party. These loans are not repaid in practice and so are no different to ordinary
income and are, and always have been, taxable.</p><p> </p><p>It is unfair to ordinary
taxpayers to let anybody continue to benefit from contrived tax avoidance of this
sort, and that is why this government has taken action to ensure that everybody pays
the taxes they owe. The charge, announced at Budget 2016, will arise on 5 April 2019.
By then affected users will have had three years to organise their financial affairs.</p><p>
</p><p>The Government recognises the charge on DR loans will have a significant impact
on some individuals who have used DR schemes, particularly those who used them to
avoid the most tax.</p><p> </p><p>HM Revenue and Customs (HMRC) are working to help
people put things right. HMRC have published a simplified process for DR scheme users
to spread payment of the tax they owe over 5 years if their current income is less
than £50,000, and they are no longer in avoidance. Those with higher incomes or who
need to pay over a longer period can also request extended payment periods, which
will be tailored to individual circumstances. Anyone who is worried about being able
to pay what they owe should contact HMRC as soon as possible.</p><p> </p>
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