Inland Revenue's decision to drop SSAS loans from next April might not go through, says Cadde, the I...
Inland Revenue's decision to drop SSAS loans from next April might not go through, says Cadde, the IFA Group, as a rule change suggests the Revenue has softened its approach.
In its response to the Inland Revenue's Update 143: 'Loans made by SSAS', Paul Cadde, managing director for Cadde says a distinct change - clarifying existing practice - concerning the repayment terms for SPSS seems to undermine their decision last December to drop SSAS loans from April 2004.
Cadde says he wonders why the Inland Revenue would bother to clarify the practice regarding such loans if their intention is to scrap the loans in a year's time.
"It seems to me that, while this is not proof positive of a change of heart, it certainly suggests the Inland Revenue is a lot more open minded about allowing SSAS loans to continue than they indicated in December's Consultative Document," he says.
It used to be regarded as acceptable for a short-term loan to be paid back on an interest-only basis, and the capital repaid at the end of the term.
However, under the rule clarification, the Revenue expects all capital and interest repayments to be paid on at least a quarterly basis, points out Cadde.
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