Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent assessment he has made of the compatibility of the Loan Charge scheme with the principles of natural justice.

The Loan Charge was introduced to tackle a particular form of tax avoidance that has been going on in many forms for years. It would be unfair to ordinary taxpayers to let anybody benefit from tax avoidance of this sort, and that is why the Government took this action.

In 2019, the Independent Loan Charge Review, led by Lord Morse, found that it was right for the Government to ensure that the tax was collected and that the Loan Charge should remain in force, though with changes to manage its impact. The Government implemented 19 of the 20 recommendations made by Lord Morse.

HMRC’s powers are balanced by a comprehensive suite of safeguards for taxpayers, and the Loan Charge follows these. All taxpayers have the right to appeal tax decisions made by HMRC. Where someone disagrees with HMRC’s assessment that the Loan Charge applies they can appeal that decision.