Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the independent review of Loan Charges published on 3 December 2020, whether he plans to commission a new review to examine the Loan Charge in the context of promoters of these schemes as well individuals using these schemes.

An independent review of the Loan Charge has already taken place. The 2019 Review, which was conducted by Lord Morse, 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 19 of the 20 recommendations in the Review, including those related to the promoters of schemes.

Following the Review, HMRC published its strategy to challenge and deal with promoters of tax avoidance schemes. A key part of this strategy is to disrupt the business models of promoters of disguised remuneration and other tax avoidance schemes and use every tool available to prevent them marketing their schemes. HMRC has a range of legislative powers to tackle promoters, under three main regimes: Disclosure of Tax Avoidance Schemes, Promoters of Tax Avoidance Schemes, and the Enablers penalty. Penalties can be charged for various failures to comply with the requirements of these regimes.

The Government recognises that there is more to do to stop promoters from selling their schemes. Finance Acts 2021 and 2022 introduced new measures that will help HMRC to take action more quickly.