Asked by: Nadia Whittome (Labour - Nottingham East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to ensure that the review of the Loan Charge is (a) independent, (b) transparent, (c) robust and (d) free from interference.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government commissioned an independent review of the loan charge to help bring the matter to a close for those affected whilst ensuring fairness for all taxpayers. The Government will respond by Autumn Budget 2025.
The independent review was led by Ray McCann whose name was suggested by one of the Loan Charge campaigners. The terms of reference made it clear that he would be supported by a team of officials based outside of HM Treasury and HMRC, none of whom had previously worked on this policy area. Mr McCann was responsible for deciding how to conduct the review and will also have the final say on what is included in his report.
HMRC has guidance and training in place for customer advisors on identifying people who need extra support and providing reasonable adjustments to meet their needs. HMRC can offer support to individuals with disguised remuneration liabilities through manageable payment plans and its well-established Extra Support Service.
Where appropriate, HMRC will signpost people to relevant voluntary and community organisations and where needed, to a dedicated Samaritans helpline for specialist emotional support where people can talk though any concerns or worries.
Asked by: Euan Stainbank (Labour - Falkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the effectiveness of the application of the Litigation and Settlement Strategy on settlements made following disguised renumeration schemes.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government commissioned an independent review of the loan charge to help bring the matter to a close for those affected whilst ensuring fairness for all taxpayers. The Government will respond by Autumn Budget 2025.
The Litigation and Settlement Strategy (LSS) ensures that HMRC applies the law fairly and consistently. The LSS applies as much to the resolution of a dispute with a multinational corporation as it does to small business customers or individuals. This ensures every taxpayer, no matter who they are, pays the tax due under the law.
Central to the LSS is that HMRC will not settle a dispute by agreement for an amount which is less than it would reasonably expect to obtain from litigation.
Asked by: Al Pinkerton (Liberal Democrat - Surrey Heath)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of HMRC’s loan charge repayment policies on people in Surrey Heath constituency.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government commissioned an independent review of the loan charge to help bring the matter to a close for those affected whilst ensuring fairness for all taxpayers. The Government will respond by Autumn Budget 2025.
The Government recognises the concerns raised about the loan charge. The independent review examined the barriers that prevent those people subject to the loan charge from reaching resolution with HMRC.
HMRC continues to provide support for those affected, with agreed manageable payment plans and a well-established Extra Support Service. It has guidance and training in place for all customer advisors or settlement teams on identifying taxpayers who need extra support and providing reasonable adjustments to meet their needs.
Asked by: Callum Anderson (Labour - Buckingham and Bletchley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what criteria HMRC will use to prioritise enforcement on high-risk tax areas.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC uses a risk-based approach to identify individuals and businesses for investigation, applying civil and criminal powers to tackle avoidance, evasion, and error. In 2024–25, this approach helped protect an estimated £48 billion in tax revenue.
Its Strategic Picture of Risk combines data analytics and expert insight to assess key compliance risks. This informs HMRC’s planning, resource allocation, and case selection, using data from tax returns and third-party sources (e.g. banks, online platforms, other departments).
Compliance activity is tailored to taxpayer groups such as large businesses, individuals, and suspected tax avoiders or criminals. HMRC prioritises interventions based on their wider impact on tax compliance, economic objectives, and societal harm. HMRC’s compliance approach, Prevent, Promote and Respond, focuses on preventing non-compliance from happening in the first place, and helping customers get their tax right before they submit their return or claim.
Asked by: Freddie van Mierlo (Liberal Democrat - Henley and Thame)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will hold discussions with HMRC on the difference between the loan charge settlement terms offered to (a) large companies and (b) other people.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government commissioned an independent review of the loan charge to help bring the matter to a close for those affected whilst ensuring fairness for all taxpayers. The Government will respond by Autumn Budget 2025.
HMRC applies the law fairly and consistently in accordance with its published Litigation and Settlement Strategy (LSS). This ensures every taxpayer, no matter who they are, pays the tax due under the law.
Central to the LSS is that HMRC will not settle a dispute by agreement for an amount which is less than it would reasonably expect to obtain from litigation.
HMRC’s Litigation and Settlement strategy can be found on gov.uk: www.gov.uk/government/publications/litigation-and-settlement-strategy-lss
Asked by: James Cleverly (Conservative - Braintree)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of trends in the level of tax (a) evasion and (b) avoidance linked to candy retail stores.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
As my rt. hon Friend the Prime Minister said, the Government recently launched a major crackdown against criminals using high street businesses to launder money at almost 400 properties, which involved securing freezing orders over bank accounts totaling more than £1 million and arresting 35 individuals.
HMRC is leading a cross-Government risk assessment to establish a shared understanding of the key risks and their underlying drivers. The findings of this assessment will inform a revitalised and more ambitious coordinated cross-government approach to addressing the harms associated with these retail models.
Asked by: Angus MacDonald (Liberal Democrat - Inverness, Skye and West Ross-shire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of legislative changes to require HMRC to prioritise investigations of (a) promoters and (b) perpetrators of fraudulent schemes over investigations of (i) professional footballers, (ii) loan charge victims and (c) other individuals misled into such schemes.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC already takes action against those behind tax avoidance schemes by using a variety of legislation and tools to challenge promoters and others in the tax avoidance supply chain.
HMRC also regularly publishes information on tax avoidance schemes, those who promote them and others connected to avoidance schemes, to help customers identify, avoid, and exit them. As of 4 September 2025, HMRC has published details of more than 170 tax avoidance schemes and named more than 170 promoters on GOV.UK
The Government is determined to do more to close in on promoters of marketed tax avoidance and recently consulted on a package of measures to strengthen existing powers. This includes proposals to:
Where individuals owe tax, HMRC seeks to take a supportive and proportionate approach to recovering the amount due, including providing extra support for individuals who need it and offering ‘Time to Pay’ instalment arrangements where appropriate.
Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment she has made of the adequacy of compliance with international tax standards by the Overseas Territories.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The inhabited Overseas Territories are largely self-governing jurisdictions with democratically elected governments, and are responsible for fiscal matters.
All Overseas Territories with financial centres have committed to upholding international tax standards, including those on tax transparency and exchange of information, and Base Erosion and Profit Shifting.
Compliance with international standards is assessed through a system of peer reviews and monitoring within the G20/OECD Inclusive Framework on Base Erosion and Profit Shifting and the Global Forum on Transparency and Exchange of Information for Tax Purposes.
The UK also works bilaterally with the Crown Dependencies and Overseas Territories on issues of mutual concern. For example, on 27 May 2025, the UK and Isle of Man issued a joint statement, agreeing to explore ways to further enhance information flows, joint working and other ways in which tangible benefits for both jurisdictions can be achieved, noting our shared objective of combatting tax avoidance and evasion.
Asked by: Neil Duncan-Jordan (Labour - Poole)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to compensate those adversely affected by the Loan Charge scandal.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
At Autumn Budget 2024, the government committed to an independent review of the Loan Charge to help bring the matter to a close for those affected whilst ensuring fairness for all taxpayers. The Government will respond by Autumn Budget 2025.
Asked by: Julian Lewis (Conservative - New Forest East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Exchequer Secretary to the Treasury's oral contribution of 1 July 2025, Official Report, column 137, for what reason her Department did not inform (a) Rt hon. and hon. Members and (b) those (i) contractors, (ii) freelance workers and (iii) small company directors who were (A) mis-sold disguised remuneration schemes and (B) subject to the Loan Charge of HMRC's Loan Charge settlement with multinational companies.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government commissioned an independent review of the Loan Charge to help bring the matter to a close for those affected whilst ensuring fairness for all taxpayers. The Government will respond by Autumn Budget 2025.
During Oral Questions on 1 July 2025, Greg Smith MP referred to comments made by an external stakeholder that were shared under the Freedom of Information Act 2000. HMRC Officials do not recognise the allegation that HMRC agreed deals with large employers allowing them to settle disguised remuneration liabilities for less than was legally due.
HMRC applies the law fairly and consistently in accordance with its published Litigation and Settlement Strategy (LSS). This ensures every taxpayer, no matter who they are, pays the tax due under the law. Central to the LSS is that HMRC will not settle a dispute by agreement for an amount which is less than it would reasonably expect to obtain from litigation.
HMRC’s Litigation and Settlement strategy can be found on gov.uk: www.gov.uk/government/publications/litigation-and-settlement-strategy-lss