Post by rogerbu on Dec 20, 2015 15:10:30 GMT
fundingsecure I am still concerned about your position that 'As our loans are not securities and are not part of any AIS scheme.......' With the implication that the final purchaser will be liable for Income Tax on all the interest when a loan matures, ends or is redeemed early.
The Accrued Income Scheme was enacted to stop 'Bondwashing'. The practice of converting accrued interest into capital gains. Most of us pay Income tax, a lot less pay Capital Gains Tax. Thus the AIS is specifically in place to stop the practice that Fundingsecure is now allowing via its SM.
HMRC's SAIM4000 et al defines securities in SAIM4040
www.hmrc.gov.uk/manuals/saimmanual/SAIM4000.htm
www.hmrc.gov.uk/manuals/saimmanual/saim4040.htm
'The AIS applies to all kinds of negotiable interest bearing stocks and bonds. ITA07/S619 defines ‘securities' as any loan stock or similar security, other than an ‘excluded security’, of the UK government, of any other government, of any public or local authority in the United Kingdom or elsewhere, or of any company or other body. It does not matter whether or not the securities are secured, carry a right to interest of a fixed amount or at a fixed rate per cent of the nominal value of the security, or are in bearer form. ‘Securities’ includes building society shares that are qualifying corporate bonds (see CG53700 onwards), but does not include any other shares in a company.
Thus virtually all forms of negotiable interest bearing financial instruments (including gilts) are brought within the AIS, unless specifically excluded.'
Can you confirm that you have evidence that HMRC agrees with you that FS's Loans sold/bought on the SM are excluded from the AIS.
I don't want HMRC coming after me because FS has failed to implement it's SM in accordance with the Accrued Income Scheme.
The Accrued Income Scheme was enacted to stop 'Bondwashing'. The practice of converting accrued interest into capital gains. Most of us pay Income tax, a lot less pay Capital Gains Tax. Thus the AIS is specifically in place to stop the practice that Fundingsecure is now allowing via its SM.
HMRC's SAIM4000 et al defines securities in SAIM4040
www.hmrc.gov.uk/manuals/saimmanual/SAIM4000.htm
www.hmrc.gov.uk/manuals/saimmanual/saim4040.htm
'The AIS applies to all kinds of negotiable interest bearing stocks and bonds. ITA07/S619 defines ‘securities' as any loan stock or similar security, other than an ‘excluded security’, of the UK government, of any other government, of any public or local authority in the United Kingdom or elsewhere, or of any company or other body. It does not matter whether or not the securities are secured, carry a right to interest of a fixed amount or at a fixed rate per cent of the nominal value of the security, or are in bearer form. ‘Securities’ includes building society shares that are qualifying corporate bonds (see CG53700 onwards), but does not include any other shares in a company.
Thus virtually all forms of negotiable interest bearing financial instruments (including gilts) are brought within the AIS, unless specifically excluded.'
Can you confirm that you have evidence that HMRC agrees with you that FS's Loans sold/bought on the SM are excluded from the AIS.
I don't want HMRC coming after me because FS has failed to implement it's SM in accordance with the Accrued Income Scheme.
