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Can HMRC do this? IVA/Bankruptcy
EagerLearner2020
Posts: 3 Newbie
Hi everyone,
I am asking for a friend so please bear with me if I do not know full details but I can add more here as much as possible as I go.
An elderly man living in Europe initially loaned his UK daughter £20k towards a UK home deposit. When the daughter had to sell the property due to some tragic family circumstances re her husband (which in turn caused debt and thus forcing the sale) they ensured the elderly relative was repaid the £20k as soon as the sale went through. There were lots of other debtors and an IVA was agreed with HMRC for those and were aware of the deposit being owed to the relative. The daughter then still rented locally and has made payments on the IVA for the debt owing to suppliers.
Over a year later now, HMRC have suddenly noted that the original £20k was repaid, saying that that the elderly relative should *not* have been paid first by the daughter as they were not a 'secured lender'. No one knows why they are only saying this now. Neither the elderly relative or daughter knew that repaying it was wrong at the time.
The daughter has recently made an offer to HMRC to therefore pay at least some of the amount to them, and a payment plan but they are refusing. They state they will chase the elderly relative in Europe for the amount. He is very fragile and unwell as it is, and this is causing massive stress. They do have funds in an offshore account but it would leave them vulnerable, even if the daughter pays them some money here and there over months/years.
The initial questions would be:
Can HMRC do this if they did not state anything originally? It seems they can but maybe there's an angle we are not aware of
Are there specialists that deal in this and if so what kind?
Can HMRC access offshore accounts, if so would this take weeks or months?
If the offshore funds were moved, could the relative still be chased in Europe?
It is frustrating to the daughter as they are now facing bankruptcy and have offered to pay a large amount plus more as best they can as part of it, but it is being refused.
Any help is much appreciated thank you.
I am asking for a friend so please bear with me if I do not know full details but I can add more here as much as possible as I go.
An elderly man living in Europe initially loaned his UK daughter £20k towards a UK home deposit. When the daughter had to sell the property due to some tragic family circumstances re her husband (which in turn caused debt and thus forcing the sale) they ensured the elderly relative was repaid the £20k as soon as the sale went through. There were lots of other debtors and an IVA was agreed with HMRC for those and were aware of the deposit being owed to the relative. The daughter then still rented locally and has made payments on the IVA for the debt owing to suppliers.
Over a year later now, HMRC have suddenly noted that the original £20k was repaid, saying that that the elderly relative should *not* have been paid first by the daughter as they were not a 'secured lender'. No one knows why they are only saying this now. Neither the elderly relative or daughter knew that repaying it was wrong at the time.
The daughter has recently made an offer to HMRC to therefore pay at least some of the amount to them, and a payment plan but they are refusing. They state they will chase the elderly relative in Europe for the amount. He is very fragile and unwell as it is, and this is causing massive stress. They do have funds in an offshore account but it would leave them vulnerable, even if the daughter pays them some money here and there over months/years.
The initial questions would be:
Can HMRC do this if they did not state anything originally? It seems they can but maybe there's an angle we are not aware of
Are there specialists that deal in this and if so what kind?
Can HMRC access offshore accounts, if so would this take weeks or months?
If the offshore funds were moved, could the relative still be chased in Europe?
It is frustrating to the daughter as they are now facing bankruptcy and have offered to pay a large amount plus more as best they can as part of it, but it is being refused.
Any help is much appreciated thank you.
0
Comments
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HMRC can basically do what it likes within its wide and varied remit.
Weather they can recover money from a non UK national in a foreign country though, i have no idea.
When they say "chase the elderly relative for the money" all that means is they will write and ask him to pay, i doubt there powers stretch to anything more.
They should take specialist legal advice.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Hi thanks sourcrates the elderly relative is UK born but lives abroad if this helps?0
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EagerLearner2020 said:Hi thanks sourcrates the elderly relative is UK born but lives abroad if this helps?
But as i said above, you need expert advice to be certain.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Hi as I understand it part of the overall debt is to HMRC, possibly they are one of the main debtors, followed by others in the IVA. I am not sure of any amounts but can only imagine this is why they are involved.
What kind of specialist might assist please? The relative is very stressed and was planning on moving back to the Uk due to ill health to be closer to them but I know they are worried now.0
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