For Eclipse members, this long awaited update is a welcome confirmation that HMRC are now in a position to agree a full and final settlement.
In terms of full and final settlement, HMRC have confirmed that they “will not pursue individuals for tax on income treated as paying back borrowings, including for periods after individuals had exited the LLPs” – known in colloquial terms on what has become known as ‘dry income’.
The settlement opportunity is for current and former Eclipse members (except those subject to a criminal investigation). It cannot be stressed enough, that this is for all individual Eclipse members, including:
- The members who have not previously engaged with HMRC
- The members who were or are part of an action group
- The members who have historically made a payment on account to HMRC towards their anticipated Eclipse liabilities.
If cashflow is an issue, HMRC will agree a Time to Pay arrangement based on the member’s individual circumstances.
This is the time for all members to agree final settlement with HMRC and bring closure to all Eclipse related tax matters. We recommend seeking professional advice before agreeing to a settlement with HMRC.
We are here to help. With an in-depth knowledge of Eclipse LLPs, we can guide you through the process in its entirety, including:
- Liaise with HMRC on your behalf
- Review the HMRC settlement opportunity and advise
- Discuss the funding of the settlement liability with you
- Agree a payment plan with HMRC
- Finalise your agreement with HMRC.
Please do not hesitate to contact Danielle Ford Head of Tax Disputes and Resolutions