Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the the value for money of the Loan Charge.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The Government commissioned an independent review of the loan charge to bring the matter to a close for those affected, ensure fairness for all taxpayers and ensure that appropriate support is in place for those subject to the loan charge.

The Government accepted the review’s conclusion that the loan charge was an extraordinary piece of Government policy which necessitated an exceptional response, and is now legislating a new settlement opportunity that will assist those who have not yet settled to do so.

As a result, most individuals could see reductions of at least 50% in their outstanding loan charge liabilities, and an estimated 30% of individuals could have these liabilities written off entirely. To encourage more people to settle, the Government will write off the first £5,000 of liabilities in addition to the proposals put forward by Ray McCann.

The Government’s response to the review represents a fair and proportionate attempt to provide a route to resolution for those who have not yet been able to settle with HMRC. In turn, this requires those individuals to now come forward and engage with HMRC in good faith.

Tax avoidance deprives the Exchequer of funds needed to deliver vital public services and it is right that resources are targeted to stop this. There are no plans to apply the review’s recommendations beyond those individuals and employers with outstanding liabilities that were the focus of the review.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of offering the same terms to be given to those facing the Loan Charge to those who have previously settled with HMRC.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The Government commissioned an independent review of the loan charge to bring the matter to a close for those affected, ensure fairness for all taxpayers and ensure that appropriate support is in place for those subject to the loan charge.

The Government accepted the review’s conclusion that the loan charge was an extraordinary piece of Government policy which necessitated an exceptional response, and is now legislating a new settlement opportunity that will assist those who have not yet settled to do so.

As a result, most individuals could see reductions of at least 50% in their outstanding loan charge liabilities, and an estimated 30% of individuals could have these liabilities written off entirely. To encourage more people to settle, the Government will write off the first £5,000 of liabilities in addition to the proposals put forward by Ray McCann.

The Government’s response to the review represents a fair and proportionate attempt to provide a route to resolution for those who have not yet been able to settle with HMRC. In turn, this requires those individuals to now come forward and engage with HMRC in good faith.

Tax avoidance deprives the Exchequer of funds needed to deliver vital public services and it is right that resources are targeted to stop this. There are no plans to apply the review’s recommendations beyond those individuals and employers with outstanding liabilities that were the focus of the review.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate she has made of the number of people who will settle their disguised remuneration liabilities as a result of the McCann Review into Loan Charge settlement terms.

Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)

The Government commissioned an independent review of the loan charge to bring the matter to a close for those affected, ensure fairness for all taxpayers and ensure that appropriate support is in place for those subject to the loan charge.

The Government accepted the review’s conclusion that the loan charge was an extraordinary piece of Government policy which necessitated an exceptional response, and is now legislating a new settlement opportunity that will assist those who have not yet settled to do so.

As a result, most individuals could see reductions of at least 50% in their outstanding loan charge liabilities, and an estimated 30% of individuals could have these liabilities written off entirely. To encourage more people to settle, the Government will write off the first £5,000 of liabilities in addition to the proposals put forward by Ray McCann.

The Government’s response to the review represents a fair and proportionate attempt to provide a route to resolution for those who have not yet been able to settle with HMRC. In turn, this requires those individuals to now come forward and engage with HMRC in good faith.

Tax avoidance deprives the Exchequer of funds needed to deliver vital public services and it is right that resources are targeted to stop this. There are no plans to apply the review’s recommendations beyond those individuals and employers with outstanding liabilities that were the focus of the review.

Question to the Home Office:

To ask the Secretary of State for the Home Department, what recent assessment she has made of the potential merits of preserving the Turkish European Communities Association Agreement pathway from proposed changes to Indefinite Leave to Remain in the Earned Settlement policy.

Answered by Mike Tapp - Parliamentary Under-Secretary (Home Office)

Following the end of the EU exit transition period on 31 December 2020, the UK is no longer obliged to provide preferential treatment to Turkish nationals on the basis of the European Communities Association Agreement (ECAA).

The earned settlement model, proposed in ‘A Fairer Pathway to Settlement’ (CP 1448), was consulted on between 20 November 2025 and 12 February 2026. We are now reviewing and analysing all responses received. This analysis will help inform the development of the final earned settlement model, including consideration of any potential exemptions or transitional measures for those already on a pathway to settlement. Once the final model has been decided, the Government will communicate the outcome publicly.

In the meantime, Appendix ECAA: Extension of Stay and Appendix ECAA Settlement will continue to apply.

Question to the Home Office:

To ask the Secretary of State for the Home Department, if she will maintain the five-year settlement period for legacy Turkish European Communities Association Agreement holders.

Answered by Mike Tapp - Parliamentary Under-Secretary (Home Office)

Following the end of the EU exit transition period on 31 December 2020, the UK is no longer obliged to provide preferential treatment to Turkish nationals on the basis of the European Communities Association Agreement (ECAA).

The earned settlement model, proposed in ‘A Fairer Pathway to Settlement’ (CP 1448), was consulted on between 20 November 2025 and 12 February 2026. We are now reviewing and analysing all responses received. This analysis will help inform the development of the final earned settlement model, including consideration of any potential exemptions or transitional measures for those already on a pathway to settlement. Once the final model has been decided, the Government will communicate the outcome publicly.

In the meantime, Appendix ECAA: Extension of Stay and Appendix ECAA Settlement will continue to apply.

Excise