Oral Answers to Questions Debate

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Department: HM Treasury

Oral Answers to Questions

David Davis Excerpts
Tuesday 1st October 2019

(5 years, 2 months ago)

Commons Chamber
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Nicholas Dakin Portrait Nic Dakin (Scunthorpe) (Lab)
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5. If he will make it his policy to suspend the 2019 loan charge for the duration of the review commissioned by his Department of that charge.

David Davis Portrait Mr David Davis (Haltemprice and Howden) (Con)
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9. What (a) support and (b) financial relief he plans to provide to people subject to the 2019 loan charge during the duration of the independent review of that charge.

Matthew Offord Portrait Dr Matthew Offord (Hendon) (Con)
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14. If he will make it his policy to suspend the 2019 loan charge for the duration of the review of that charge; and if he will make a statement.

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Jesse Norman Portrait Jesse Norman
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I am grateful for the question. Of course any injury to individuals from any act of Government or their agencies is to be deeply regretted. I recognise that, and if it has happened here, it is appropriate for the House to feel that way.

I have no powers to direct Sir Amyas Morse. I understand that he is taking evidence from external sources, including the loan charge all-party parliamentary group and the Loan Charge Action Group, which acts as its secretariat. I have met the APPG and the secretariat separately. So the matter is being fully addressed. The details of settlement have been set out on gov.uk.

David Davis Portrait Mr David Davis
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On the issue that my hon. Friend the Member for Wellingborough (Mr Bone) raised with the Minister, the hard fact is that seven people facing challenge or investigation for the loan charge have taken their own lives. He can attribute cause as he wishes. The fact is also that the distress has been caused by the historical incompetence of HMRC and the subsequent willingness of Ministers to use retrospective taxation. Are the Government going to give up on the premise of using retrospective taxation, or does it fall to the House to pass laws that will stop them doing so in future?

Jesse Norman Portrait Jesse Norman
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The legislation is not retrospective. [Hon. Members: “It is.”] There are defined circumstances in which HMRC and the Government may seek to use retrospective taxation, and they do so with extreme care and attention. All that I am doing is referring my right hon. Friend to the facts as reported to the IOPC. As he will be aware, these are immensely difficult cases in which many circumstances and factors may be in play.