Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of settlement terms for loan charge liabilities in place (a) before and (b) after 2021 on the finances of people affected.

The focus of the Independent Review of the Loan Charge was on taking action to help those individuals who do not yet have certainty about their liabilities, or who still owe money, to move on from this matter. The review identified affordability as a key barrier preventing some individuals from settling and made recommendations to remove this barrier.

The Government has gone further in supporting people on the lowest incomes by providing an additional £5,000 deduction for those in scope of the review. This entirely removes approximately 10,000 individuals from the charge. This will come at a substantial Exchequer cost over the next five years.

It represents the Government’s attempt to provide a fair route to resolution for those who have not settled with HMRC. In turn, those people need to come forward and engage with HMRC in good faith.