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Joshua
Joshua, Lawyer
Category: Law
Satisfied Customers: 31701
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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I owe some money to Hmrc for capitaql gains tax. i am

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I owe some money to Hmrc for capitaql gains tax. i am recovering from cancer and its really worrying me because its a lot. Is it possible they could write off all or most of it through common law?
JA: Where are you? It matters because laws vary by location.
Customer: London Uk
JA: What steps have you taken so far?
Customer: spoken to a debt charity and they are sorting a debt plan for me but they said the offer i can make might not be accepted
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: I believe through common law something can be done. I am not working and have very little money. infact i am on benefits but the problem is really stressful for me with my health condition.

Hello and thank you for your question. My name is ***** ***** I will be very pleased to assist you. I'm a practising lawyer in England with over 15 years’ experience. Please be aware that although I will endeavour to reply to you promptly, I am also in full time private practice and so I may not be available to respond immediately and it may also take me a few minutes to prepare a reply. The site will notify you as soon as I respond. I look forward to working with you to answer your question fully.

I am very sorry to read of the above. May I confirm approximately how much is owed please?

Customer: replied 13 days ago.
Good morning Joshua the amount for the cap gains tax was £60. 046.00 that is sixty thousand plus they have added interest now making it over £73000.00 seventy three thousand apologies the comma on my computer is missing.
Customer: replied 13 days ago.
Dear JoshuaI am sorry I cannot accept a call now I am about to leave for Hospital for cancer treatment. I should be back by 12pmRegardsJean

thank you. HMRC will rarely write off a tax debt I regret. Being a public body dealing with public finance, they do not have a significant discretion to  do so and decisions where they do decide to right of tax are generally taken on the grounds of expediency - where it is deemed that the tax is either not recoverable or would be too expensive to pursue recovery proportionate to the benefit of recovering the tax rather than on compassionate grounds.

the amount involved would make the sum too great for a debt relief order to be considered. You could consider an IVA but unless there are other creditors, HMRC may refuse consent.

It is of course open to you to attempt to agree a repayment plan with HMRCI note from what you say, you have a debt charity involved in this respect.

you can of course consider bankruptcy as an option but whether that would be attractive or not to you would depend upon what assets you own. I presume if you have generated a capital gains tax liability, you presently do own some form of not in significant asset which may make bankruptcy entirely unattractive as a possibility

Customer: replied 13 days ago.
Hi Joshua
I am back from the hospital. I cannot afford to pay £44.00 for a live phone call. I thought paying £5.00 was enough to get an answer

phone calls are entirely optional. I hope the above is of some assistance but if you have any further questions, please revert to me.

Customer: replied 13 days ago.
I want to know what a promisary note is and could i use that to pay them?

the promissory note is a usually legally enforceable promise to pay a debt. I cannot see that this is likely to be accepted as it adds nothing from HMRC's point of view as they already have extensive powers to take enforcement action in respect of unpaid tax and liability to pay tax is enshrined in statute and as such, there is no need for a promissory note

Customer: replied 13 days ago.
what debts can a promisary note be used for?

a promissory note can be used in principle for any debt but not as of right. Rather, it requires the agreement of the creditor

Customer: replied 13 days ago.
what if the creditor has sold off the debt to a third party? am I legally obliged to npay it?
Customer: replied 13 days ago.
as far as I am concerned when its been sold it is therefore paid
Customer: replied 13 days ago.
I have no contract with the new owner

I assume we are probably no longer talking about HMRC here but irrespective, debt can be sold on by way of assignment to another party and where that happens, then the debt would be payable to you that party who has acquired the debt by way of assignment. There is no requirement for a debtor to consent to an assignment unless they have an express contractual right to do so which would be exceptionally rare

Customer: replied 13 days ago.
I am sorry
I cannot afford the call. One final thing so there is no way in common law to be able to settle a debt with HMRC?

one can certainly settle a debt but I suspect what you mean above is there a way to avoid a debt or at least avoid enforcement action in respect of a debt. Generally, this would  require either you agreeing settlement or repayment plan with HMRC or considering some form of insolvency action to write off the debt, but if you have assets, any assets you have be able to be put to the debt as part of any insolvency

Customer: replied 13 days ago.
Okay
Thank you very much for the information

I'm glad the above answers all your questions for now. If you have any follow up questions please revert to me.

Customer: replied 13 days ago.
Okay

I'm very glad the above was of some assistance

Customer: replied 13 days ago.
thank you
yes it was of some assistant. I do not believe you told me enough about paying other bills with a promissory note.

a promissory note can be offered as payment for a debt but in the absence of an express term in agreement allowing a promissory note as payment, it is not a form of payment that can be unilaterally imposed upon a creditor. In other words, a creditor does not have to accept a promissory note in payment of a debt

Customer: replied 13 days ago.
what is an express term in agreement? please give an example

An express term would be a term you specifically agree with another party.

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