Oral Answers to Questions

Debate between Mel Stride and Janet Daby

Tuesday 29th January 2019 Commons Chamber

[The Financial Secretary to the Treasury (Mel Stride)]

I thank my hon. Friend for that question. The creative industries are vital to our country. This Government have provided an array of very important tax reliefs to that sector—they were valued at £850 million in 2017-18. We will continue to support the sector.

[Janet Daby (Lewisham East) (Lab)]

T5.   Constituents such as mine are facing large retrospective bills because of the loan charge. What plans does HMRC have to litigate against those who have disguised remuneration arrangements since 2016?

[Mel Stride]

As the hon. Lady may know, the way the loan charge works is that those who have been involved in this form of tax avoidance have until April to settle their affairs, in which case no penalty will be applied at all. We have also said that those earning £50,000 or less will automatically qualify for a five-year minimum repayment term. My message, as always in these circumstances, is that those who are involved in these schemes should come forward, speak to HMRC and sensibly sort out their arrangements.