Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent assessment he has made of the effectiveness of the legislative framework governing HMRC's enforcement of the Loan Charge against (a) employees and (b) employers.

The Chancellor of the Exchequer has not had any recent discussions nor made any recent assessment as referenced in these questions.

The charge on disguised remuneration loans (the Loan Charge) was legislated in Finance (No.2) Act 2017. Changes to the Loan Charge were enacted in Finance Act 2020 in line with the accepted recommendations made in Lord Morse’s Independent Loan Charge Review.

HMRC published their report to Parliament on GOV.UK in December 2020. This covers the implementation of changes to the Loan Charge and next steps for affected taxpayers, including individuals and employers.

At Budget 2021, the Government committed to invest further in HMRC to fund compliance work on the Loan Charge, historic disguised remuneration cases and early intervention to encourage individuals to exit tax avoidance schemes. HMRC will continue to monitor compliance with the Loan Charge.