Under EUROPEAN law there are four FUNDAMENTAL RIGHTS one of those rights is the "freedom of movement of capital". EU law stands over UK law, which means that if the UK, for example, passes a law which interferes with a fundamental right, it must change that law to comply with EU law.
WE WILL ARGUE THAT THE LOAN CHARGE BREACHES EU LAW, as a result IT MUST BE STOPPED!
We now have an Opinion from Leading Counsel, Richard Clayton QC, and his Junior (a joint Opinion) which states in terms that a challenge based on EU law arguments has a “better than fifty percent chance of success” the test for winning a Judicial Review is fifty percent, so when counsel says better than fifty percent, it means we should win. The Counsel who provided this opinion are experts in Judicial Review and EU law. We have also instructed Andrew Thornhill QC, therefore we have two Leading Counsel, Junior Counsel, providing together expertise in Judicial Review, EU law and tax law.
We plan to launch two challenges to the Loan Charge. One in Scotland where EU law is looked on more favourably and it is cheaper to launch an application for Judicial Review and one in the High Court in England. Challenges will be launched for both those who were employed and self-employed.
A “Letter before Action” will be sent to HMRC in England within the next few days, while no such letter is required in Scotland legal action will be started without notice to HMRC as soon as the paperwork is finished.
As a direct result of the challenge being launched qualified counsel have provided a short Opinion. This Opinion will allow you to go to your accountant and or tax advisor and if he agrees with the Opinion and takes into account the planning which you have used you will be able to legitimately not enter the details of loans on your SATR. This SHOULD REMOVE THE RISK of punitive (up to 100%) penalties but not interest and late payment penalties(up to 15%) should the challenge fail.
THIS STEP DOES NOT HAVE TO BE TAKEN BEFORE 30 SEPTEMBER.
Over the next few days, this site will be further updated with additional FAQs, an Executive summary from counsel and more.
Please check back regularly for those updates.