The government review of how interest is applied within the tax system is to be published by 30 November 2020, rather than 31 July as originally intended, as a result of coronavirus delays. The review was recommended in the December 2019 final report of the disguised remuneration loan charge review, led by Sir Amyas Morse.
Alongside the announcement of the delay, HMRC has also confirmed that the review will be much wider than the disguised remuneration loan charge and will cover:
the underlying principles for HMRC charging and paying interest;
the difference between interest rates charged and paid;
commercial interest rates applied in the financial products market;
interest rates used by comparable tax authorities internationally;
HMRC communications with taxpayers who are liable to interest dating back a number of years; and
interactions with other government reviews and initiatives.
The government review of how interest is applied within the tax system is to be published by 30 November 2020, rather than 31 July as originally intended, as a result of coronavirus delays. The review was recommended in the December 2019 final report of the disguised remuneration loan charge review, led by Sir Amyas Morse.
Alongside the announcement of the delay, HMRC has also confirmed that the review will be much wider than the disguised remuneration loan charge and will cover:
the underlying principles for HMRC charging and paying interest;
the difference between interest rates charged and paid;
commercial interest rates applied in the financial products market;
interest rates used by comparable tax authorities internationally;
HMRC communications with taxpayers who are liable to interest dating back a number of years; and
interactions with other government reviews and initiatives.
