Tax Avoidance

(asked on 30th October 2018) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what proportion of the £3.2 billion that the Loan Charge 2019 is estimated to raise for the public purse by 2021 is projected to be recovered from scheme providers.


Answered by
Mel Stride Portrait
Mel Stride
Secretary of State for Work and Pensions
This question was answered on 7th November 2018

The Government estimates that £3.2 billion from the loan charge policy will be collected from scheme users who can be employers or individuals. 75% of the estimated amount is expected from employers and 25% from individuals.

Since the announcement of the 2019 loan charge at Budget 2016, HMRC has agreed settlements on disguised remuneration schemes with employers and individuals of over 650 million pounds. More than 90% of this amount was collected from employers, with less than 10% from individuals. If scheme users repay the loan or agree a settlement for the tax that they owe with HMRC, they will not face the charge.

Providers or promoters of tax avoidance schemes are not liable for the loan charge unless they themselves have used arrangements caught by the legislation. HMRC pursues those who promote or enable tax avoidance schemes to ensure that nobody profits from selling avoidance.

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