Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how many individuals with outstanding Loan Charge liabilities are estimated to have debts exceeding £140,000; and of those, how many she expects will be able to settle under the terms announced following the McCann Review.

This Government recognised that concerns were raised about the Loan Charge under the previous government 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.

Page 19 of the Independent Loan Charge Review report provides estimates of the distribution of outstanding liabilities.

https://www.gov.uk/government/publications/independent-review-of-the-loan-charge

The Government accepted all but one of the independent review’s recommendations and in some cases is going further, including writing off the first £5,000 from everyone’s liability. Around a third will have their liabilities written off entirely. Most people will see reductions in their liabilities of at least 50%.

The new settlement opportunity is open to anyone with outstanding Loan Charge liabilities, including employers.

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.