Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps he is taking to tackle the sale of loan charge products.

The Government and HMRC are determined to continue to tackle promoters of tax avoidance schemes. It is not acceptable for promoters to market tax avoidance schemes which do not work and deprive the Exchequer of tax that is owed, and it is unfair to the vast majority of taxpayers who pay in full and on time.

In December 2019 the Government announced in its response to the Independent Loan Charge Review further measures to tackle promoters of avoidance schemes that will reduce the scope for promoters to market tax avoidance schemes.

The Government will:

• Ensure HMRC can more effectively issue stop notices to promoters to make it harder to promote schemes that do not work;

• Prevent promoters from abusing corporate entity structures that sell schemes to avoid their obligations under the Promoters of Tax Avoidance Scheme (POTAS) rules;

• Ensure HMRC can obtain information about the enabling of abusive schemes as soon as they are identified, and enabler penalties are felt without delay when a scheme has been defeated at tribunal;

• Ensure that HMRC can act decisively where promoters fail to provide information on their avoidance schemes; and

• Make further technical amendments to the POTAS regime so that it continues to operate effectively and to ensure that the General Anti Abuse Rule (GAAR) can be used to counteract partnerships as intended.

Further detail on these measures will be set out at the Budget.