Oral Answers to Questions

Christian Matheson Excerpts

Tuesday 7th January 2020 Commons Chamber

[John Glen]

I recognise the challenge of getting to the heart of the problems in different constituencies, and I would be happy to meet my hon. Friend to better understand his specific concerns so that we can get to the heart of the problem in his constituency.

[Christian Matheson (City of Chester) (Lab)]

5. What recent representations he has received on the application of the 2019 loan charge.

[Julie Marson (Hertford and Stortford) (Con)]

11. What recent progress has been made by Sir Amyas Morse on the independent review of the 2019 loan charge.

[The Financial Secretary to the Treasury (Jesse Norman)]

Happy new year, Mr Speaker. Given that it is my first time at the Dispatch Box since you became Speaker, let me just say that I recall running an operation in 2014 to prevent your predecessor from rigging the selection of the Clerk of the House of Commons; I think it speaks to the esteem in which you are held across this House that one could imagine no such thing under your speakership.

The Government published Sir Amyas Morse’s independent review of the loan charge on 20 December, alongside the Government’s response to his recommendations.

[Christian Matheson]

Clearly the loophole had to be closed, but not in the retrospective fashion that has hit so many of my constituents. If these arrangements were already illegal when my constituents were charged, why was it necessary to bring in the loan charge in 2017 at all?

[Jesse Norman]

As the hon. Gentleman will be aware from reading the review, it is a very thorough and comprehensive piece of work and Sir Amyas goes into this question. He has accepted the case for a loan charge in principle—he recognises that it was important to address the issue of abusive tax avoidance—but he said that it should apply to loans taken out after a specific date. In his judgment, that represents a fair balance between the concerns that the hon. Gentleman raises and the loan charge, and the Government have accepted that.