Oral Answers to Questions Debate

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Department: HM Treasury

Oral Answers to Questions

Christine Jardine Excerpts
Tuesday 21st May 2019

(5 years, 6 months ago)

Commons Chamber
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Paul Williams Portrait Dr Paul Williams (Stockton South) (Lab)
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1. What steps he is taking to support people affected by the 2019 loan charge.

Christine Jardine Portrait Christine Jardine (Edinburgh West) (LD)
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2. What representations he has received on the 2019 loan charge; and if he will make a statement.

Ivan Lewis Portrait Mr Ivan Lewis (Bury South) (Ind)
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12. What steps he is taking to support people affected by the 2019 loan charge.

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Mel Stride Portrait Mel Stride
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I refute the suggestion that anybody is forced into making a tax-avoidance arrangement. If something looks too good to be true, it generally means that it is just that. Of the settlements to date, which have been worth more than £1 billion, some 85% have been from employers, not employees, and we are actively pursuing the promoters of these schemes in exactly the way in which the hon. Gentleman would wish.

Christine Jardine Portrait Christine Jardine
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I understand that the all-party group on the loan charge has been sent evidence of the suicide of three people facing the loan charge. More than 100 people in Edinburgh West have been affected by the charge. Many of them have come to see me at constituency surgeries and are worried about their financial future. They did not understand that this tax was going to be put in place retrospectively. In the light of all the evidence, I am concerned about the wellbeing of those constituents who say that they may face financial ruin. Surely the only responsible thing to do is to pause and announce a delay and an independent review, given that we know that people have already lost their lives.

Mel Stride Portrait Mel Stride
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The loan charge is not retrospective. There has never been a time in the history of our country when the arrangements that I described a moment ago were ever compliant with our tax code. Of course, the loans, which there is no intention of ever repaying—they are simply there to avoid national insurance and income tax—persist into the present. Generous “time to pay” arrangements are available with HMRC; I urge anybody who is involved in avoidance of this kind to talk to HMRC and come to sensible arrangements.