Tax Avoidance

(asked on 1st July 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of introducing a means tested loan charge repayment scheme.


Answered by
Jesse Norman Portrait
Jesse Norman
This question was answered on 7th July 2020

The Government estimates that 50,000 individuals were affected by the Loan Charge and that following the implementation of the Loan Charge Review’s recommendations, about 11,000 will be taken out of its scope altogether, and more than 30,000 will benefit from the changes. One significant change is to allow taxpayers to split their loan balance evenly across three tax years.

People will not to have to pay their Loan Charge debts in one go. Where a taxpayer cannot pay in full on time, HMRC will seek to agree payment by instalments with them. The payment plan agreed will be based on what the taxpayer can afford and there is no upper limit over how long HMRC can potentially spread payments.

HMRC will not require payment of more than 50% of disposable income, aside from where taxpayers have very high disposable incomes. Where a taxpayer has no disposable assets and earns less than £50,000, they are automatically entitled to a minimum of a five-year payment plan, and where they earn less than £30,000, a minimum of seven years. HMRC have also committed that they will not force a taxpayer to sell their main home or release their existing pension to fund a disguised remuneration or Loan Charge tax bill.

HMRC have established a dedicated team to handle enquiries from Loan Charge taxpayers. Any taxpayer unable to pay in full and needing a payment plan should contact the Loan Charge helpline on 03000 599110.

This content was generated for your convenience by Parallel Parliament and does not form part of the official record.
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Latest Documents
Recent Speeches related to Tax Avoidance

1. Finance (No. 3) Bill (Ninth sitting)
11/12/2018 - Public Bill Committees

1:  page 53, line 28, at end insert—“(7A) But an assessment under subsection (2) may not be sought by the - Speech Link
2:  page 53, line 28, at end insert—“(7A) But an assessment under subsection (2) may not be sought by the - Speech Link
3: onwards, review the revenue effects of the changes made by this section to TMA 1970 and lay a report of - Speech Link

2. Finance Bill (Second sitting)
04/06/2020 - Public Bill Committees

1: clarify, to that extent, the point the hon. Lady made. I think that tracks relatively clearly our normal - Speech Link
2: on the loan charge. I do not need to tell any Member of the House of Commons that the loan charge has elicited - Speech Link

3. Oral Answers to Questions
21/05/2019 - Commons Chamber

1: contrived form of tax avoidance that involves a loan, which there is never any intention of repaying - Speech Link
2: something looks too good to be true, it generally means that it is just that. Of the settlements to date - Speech Link
3: on the loan charge has been sent evidence of the suicide of three people facing the loan charge. More - Speech Link

4. Finance Bill
01/07/2020 - Commons Chamber

1: insert—“(2) Any review made under (1) must include an assessment of the effect of the DST on tax - Speech Link
2: mouse of a measure compared with the huge profits made by American big tech? Does she also agree with me - Speech Link
3: urge the Minister to listen to the arguments being made and take urgent action to address them.The - Speech Link

5. Oral Answers to Questions
27/04/2021 - Commons Chamber

1: in south Wales. I have already written to the Chancellor about the improvements that are needed for the - Speech Link
2: they can access fast-track support, so can the Chancellor confirm that this long overdue reform will be - Speech Link
3: carers allowance and to introducing a new winter heating payment. Does the Chancellor accept that these are - Speech Link

Latest Speeches
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