Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether his Department made an assessment of the potential effect of the Loan Charge on the (a) mental health and (b) number of suicides amongst people subject to that charge prior to its introduction.

The Government is committed to using taxpayer insight and data to ensure the taxpayer impacts of tax policies are identified and understood. Tax Information and Impact Notes (TIINs) are intended to give a clear explanation of the policy objective together with details of the tax impact on the economy, equalities, and various sectors of society.

The impact of the Loan Charge on those affected was assessed ahead of the introduction of the policy. The November 2017 TIIN assessed the impact of the policy across the entire UK population, of which affected avoidance scheme users make up a very small minority. It anticipated that some individuals affected by the policy would become insolvent as a result.

The impact of the Loan Charge was also considered as part of the Independent Loan Charge Review, led by Lord Morse in 2019. Lord Morse recommended improvements be made to HMRC’s impact assessments. The Government accepted these recommendations and TIINs are now more thorough in their assessment of impacts on individuals, households and families.