Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps her Department is taking to pursue enforcement action against promoters of tax avoidance schemes in connection with the loan charge.

This government recognised that concerns continued to be raised about the loan charge and that some felt strongly that it had not been handled appropriately.

The Government therefore 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 is introducing new powers in Finance Bill 2025/26 to close in on promoters of marketed tax avoidance and the other professionals who market or enable tax avoidance schemes.

These new powers will go further and include more criminal sanctions. This shows the Government’s clear determination to close in on the few remaining promoters by strengthening deterrents and introducing significant additional consequences for promoters who continue promoting tax avoidance schemes.

At the Budget, the Government announced action to tackle tax avoidance by umbrella companies, where most disguised remuneration now takes place. The Government will introduce legislation, effective from April 2026, to make recruitment agencies using umbrella companies legally responsible for accounting for PAYE on workers’ pay. Where there is no agency in the supply chain, this responsibility will fall to the end client. This along with the measures on promoters will help prevent disguised remuneration in the future.