Tax Avoidance

(asked on 30th January 2023) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the impact of the loan charge on the mental health of affected workers and contractors; and whether the Government plans to change its policy on the loan charge.


Answered by
Victoria Atkins Portrait
Victoria Atkins
Secretary of State for Health and Social Care
This question was answered on 6th February 2023

The Loan Charge was independently reviewed by Lord Morse in 2019, who considered the impacts of the policy on individuals. The Government recognised the impact of the Loan Charge and accepted 19 of the 20 recommendations made by Lord Morse. These changes, such as removing loans made before 9 December 2010 from the scope of the Loan Charge, reduced the impact of the policy and removed aspects which were of wider concern.

However, taxpayers can still face large tax bills which may have a significant impact. That is why HMRC puts support for those affected at the core of its work to collect the Loan Charge and bring cases to settlement.

As well as the options available for managing tax bills, individuals affected by the Loan Charge are also supported by HMRC’s Extra Support teams. These are teams of specialist trained advisors who, where appropriate, signpost taxpayers to specialist Voluntary and Community organisations. To further strengthen the support offered to taxpayers, HMRC and Samaritans are currently working together to deliver an 18-month project.

Reticulating Splines