Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether his Department has plans to revisit its policy on the Loan Charge; and if he will make a statement.

An independent review of the Loan Charge, which was conducted by Lord Morse in 2019, concluded that it was right for the Loan Charge to remain in force and for the Government to collect the tax due.

The Government accepted all but one of the 20 recommendations in the review and the Government has no plans to revisit the policy.

The charge on disguised remuneration loans is targeted at contrived tax avoidance schemes which seek to avoid Income Tax and National Insurance contributions by paying users their income in the form of loans, usually via an offshore trust. This kind of tax avoidance deprives the Exchequer of funds to deliver vital public services.