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Written Question
Tax Avoidance
Thursday 21st March 2024

Asked by: Daisy Cooper (Liberal Democrat - St Albans)

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 12 March 2024 to Question 17136 on Tax Avoidance, whether it is HMRC’s policy to seek to recover tax due for liabilities incurred before December 2010, where a taxpayer has not received correspondence relating to an open compliance check for longer than 12 months.

Answered by Nigel Huddleston - Financial Secretary (HM Treasury)

In the 2019 Independent Loan Charge Review, Lord Morse recommended that the Loan Charge should only apply to loans made on or after 9 December 2010. The Government accepted this recommendation.

However, Lord Morse was also clear that, for years before this date, where there is an open enquiry or assessment under appeal HM Revenue and Customs (HMRC) should still have the ability to pursue the tax due under the existing rules. HMRC has proceeded on this basis.

HMRC continues to work with and support taxpayers to resolve all outstanding enquiries and assessments relating to their use of disguised remuneration (DR) loans, in accordance with their published DR settlement terms and HMRC’s Litigation and Settlement Strategy


As part of its overall compliance processes and its commitment to update taxpayers at least annually, all of these taxpayers should have received correspondence from HMRC in the last 12 months.


Written Question
Tax Avoidance
Tuesday 12th March 2024

Asked by: Sammy Wilson (Democratic Unionist Party - East Antrim)

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how many section 684 notices were issued by HMRC in each of the last five years.

Answered by Nigel Huddleston - Financial Secretary (HM Treasury)

In the context of Disguised Remuneration (DR), HM Revenue and Customs (HMRC) has in some circumstances used the power provided under s.684(7A)(b) of the Income Tax (Earnings and Pensions) Act 2003 (the Discretion) to collect the tax owed; and since 2022, HMRC has issued around 2,700 decisions using the Discretion.

In his independent review, Lord Morse recommended that the Loan Charge should no longer apply to loans made before 9 December 2010. However, Lord Morse said “HMRC should continue being able to settle and investigate cases prior to this point under their normal powers where they have appropriate grounds, and a legal basis, to do so”.

In line with this recommendation, HMRC is still seeking to recover the tax due where it had taken the necessary steps in the past to ensure there is an open tax enquiry or assessment which gives it the legal basis to do so.

In May 2022, the Court of Appeal said that HMRC could consider using the Discretion to collect tax directly from the individual who received income through a DR scheme.


Written Question
Tax Avoidance
Tuesday 12th March 2024

Asked by: Sammy Wilson (Democratic Unionist Party - East Antrim)

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how many notices under section 684 of the Income Tax Act 2007 have been issued to individuals with Loan Charge liabilities incurred before December 2010.

Answered by Nigel Huddleston - Financial Secretary (HM Treasury)

In the context of Disguised Remuneration (DR), HM Revenue and Customs (HMRC) has in some circumstances used the power provided under s.684(7A)(b) of the Income Tax (Earnings and Pensions) Act 2003 (the Discretion) to collect the tax owed; and since 2022, HMRC has issued around 2,700 decisions using the Discretion.

In his independent review, Lord Morse recommended that the Loan Charge should no longer apply to loans made before 9 December 2010. However, Lord Morse said “HMRC should continue being able to settle and investigate cases prior to this point under their normal powers where they have appropriate grounds, and a legal basis, to do so”.

In line with this recommendation, HMRC is still seeking to recover the tax due where it had taken the necessary steps in the past to ensure there is an open tax enquiry or assessment which gives it the legal basis to do so.

In May 2022, the Court of Appeal said that HMRC could consider using the Discretion to collect tax directly from the individual who received income through a DR scheme.


Written Question
Disguised Remuneration Loan Charge Review
Wednesday 25th October 2023

Asked by: Drew Hendry (Scottish National Party - Inverness, Nairn, Badenoch and Strathspey)

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he plans to issue a Command Paper in relation to the Disguised remuneration: independent loan charge review.

Answered by Victoria Atkins - Secretary of State for Health and Social Care

The loan charge was independently reviewed by Lord Amyas Morse in 2019, who assessed the impact of the policy on affected taxpayers. The Government accepted all but one of the Review’s 20 recommendations.

To bring the Review’s publication to the attention of Parliament, a Written Statement was made on the day (20 December 2019: UIN HCWS14). The Statement is available here: https://questions-statements.parliament.uk/written-statements/detail/2019-12-20/hcws14.

There are no plans to issue a command paper.


Written Question
Tax Avoidance
Wednesday 13th September 2023

Asked by: Matthew Offord (Conservative - Hendon)

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how many people HM Revenue and Customs was seeking loan charge payments from in relation to the tax years before April 2010, as of 8 September 2023.

Answered by Victoria Atkins - Secretary of State for Health and Social Care

In the 2019 Independent Loan Charge Review, Lord Morse recommended that the Loan Charge should only apply to loans made on or after 9 December 2010. The Government accepted this recommendation.

However, Lord Morse was also clear that, for years before this date, where there is an open enquiry or assessment under appeal HM Revenue and Customs (HMRC) should still have the ability to pursue the tax due under the existing rules. HMRC has proceeded on this basis.

HMRC continues to work with and support taxpayers to resolve all outstanding enquiries and assessments relating to their use of disguised remuneration (DR) loans, in accordance with their published DR settlement terms and HMRC’s Litigation and Settlement Strategy.


Written Question
Disguised Remuneration Loan Charge Review
Thursday 27th April 2023

Asked by: Fleur Anderson (Labour - Putney)

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how many people have been refunded by HMRC due to changes made by the Morse Review; and what the total amount of money refunded is.

Answered by Victoria Atkins - Secretary of State for Health and Social Care

Following Lord Morse’s Independent Loan Charge Review in 2019, HMRC established the Disguised Remuneration (DR) Repayment Scheme 2020 to repay voluntary payments that taxpayers had agreed to make as part of settlements concluded before changes were made to the scope of the Loan Charge. Individuals and employers had until 30 September 2021 to apply to HMRC for a refund or waiver.

HMRC repays amounts that were paid in DR scheme settlements, and/or waives amounts of instalments due that have not yet been paid if certain conditions are met.

By the end of March 2023, HMRC had processed over 2450 applications, of which over 1400 had received either a repayment, a waiver, or both. Over 1000 of the applications processed at that date were either invalid or ineligible. The total value of repayments, waivers or both that have been made by that date was over £180 million.


Written Question
Tax Avoidance
Thursday 16th March 2023

Asked by: Theresa Villiers (Conservative - Chipping Barnet)

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the conclusions of the Morse Review, for what reason HMRC are pursuing people for pre-2010 tax years, in relation to Loan Charge legislation.

Answered by Victoria Atkins - Secretary of State for Health and Social Care

In the 2019 Independent Loan Charge Review, Lord Morse recommended that the Loan Charge should only apply to loans made on or after 9 December 2010.

However, he was also clear that, for years before this date, where there is an open enquiry or assessment under appeal, HM Revenue and Customs (HMRC) should continue with enquiries and settling cases under their normal powers.

HMRC continues to work with and support taxpayers to resolve all outstanding enquiries and assessments relating to their use of disguised remuneration (DR) loans, in accordance with their published DR settlement terms and HMRC Litigation and Settlement Strategy.


Written Question
Tax Avoidance
Monday 13th March 2023

Asked by: Daisy Cooper (Liberal Democrat - St Albans)

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 7 March to Question 157046 on Tax Avoidance, how many of those taxpayers have been contacted by HMRC about those checks in the last (a) 12 weeks and (b) 12 months.

Answered by Victoria Atkins - Secretary of State for Health and Social Care

HM Revenue and Customs (HMRC) currently has around 15,000 open compliance checks relating to a number of individual taxpayers who used Disguised Remuneration (DR) tax avoidance schemes before 9 December 2010, and which are not subject to the Loan Charge following recommendations made by the Independent Loan Charge Review. These compliance checks will include both open enquiries and assessments, and taxpayers can be subject to more than one compliance check at one time.

As part of its overall compliance processes and its commitment to update taxpayers at least annually, all of these taxpayers should have received correspondence from HM Revenue & Customs in the last 12 months.


Written Question
Tax Avoidance
Monday 13th March 2023

Asked by: Daisy Cooper (Liberal Democrat - St Albans)

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 2 March to Question 157046 on Tax Avoidance and the Answer of 1 March to Question 152309, how many individuals are subject to open compliance checks relating to disguised remuneration schemes used before 9 December 2010.

Answered by Victoria Atkins - Secretary of State for Health and Social Care

HM Revenue and Customs (HMRC) currently has around 15,000 open compliance checks relating to a number of individual taxpayers who used Disguised Remuneration (DR) tax avoidance schemes before 9 December 2010, and which are not subject to the Loan Charge following recommendations made by the Independent Loan Charge Review. These compliance checks will include both open enquiries and assessments, and taxpayers can be subject to more than one compliance check at one time.

As part of its overall compliance processes and its commitment to update taxpayers at least annually, all of these taxpayers should have received correspondence from HM Revenue & Customs in the last 12 months.


Written Question
Tax Avoidance
Wednesday 1st March 2023

Asked by: Daisy Cooper (Liberal Democrat - St Albans)

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 23 February 2023 to Question 147156 on Tax Avoidance: how many (a) open enquiries and (b) active assessments relating to disguised remuneration schemes used before 9 December 2010 are outstanding.

Answered by Victoria Atkins - Secretary of State for Health and Social Care

HM Revenue and Customs currently has around 15,000 open compliance checks in respect of individual taxpayers who used DR tax avoidance schemes before 9 December 2010, and which are not subject to the Loan charge following recommendations made by the Independent Loan Charge Review. These compliance checks will include both open enquiries and assessments. An individual may have more than one compliance check depending on their scheme usage and whether it spans more than one tax year.

Taxpayers who wish to settle, whether or not the loan charge applies, can do so under the DR settlement terms 2020 which are published on GOV.UK. Taxpayers who do not wish to settle the tax due in respect of their DR scheme use under the published terms have the option of taking their cases before the tribunals and courts.