Tax Avoidance
The question
To ask the Chancellor of the Exchequer, with reference to the Loan Charge review, what steps her Department are taking to ensure consistency and fairness for individuals who have already settled their cases, compared to the concessions and reliefs now available to others who did not.
Answered by Dan Tomlinson
The purpose of the Independent Review of the Loan Charge was to bring the matter to a close for people who have not settled and paid their loan charge liabilities. The review identified affordability as a key barrier preventing those individuals from settling and made recommendations to remove this barrier, of which the Government has accepted all but one. To support those on the lowest incomes, the Government has gone further by providing an additional £5000 deduction for those in scope of the review, removing approximately 10,000 individuals from the charge entirely. This will come at a substantial Exchequer cost over the next five years.
The Government will legislate to give HMRC the power to administer a new settlement scheme. There is no plan to alter liabilities or refund tax paid by individuals who have settled and fully paid their liabilities under the loan charge.
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