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<p>The Loan Charge was announced at Budget 2016 as part of a package of measures to
tackle Disguised Remuneration (DR) tax avoidance. The forecast was last revised at
Spring Budget 2021. There was an estimated overall Exchequer yield of £3.3 billion
for the entire package, including the Loan Charge.</p><p> </p><p>In September 2019,
the Government commissioned an Independent Review into the Loan Charge which was led
by Lord Morse. The Government accepted 19 of the 20 recommendations made by the review.
Changes to the Loan Charge were estimated to reduce the forecast yield. At Budget
2020, the changes were costed as a separate measure, with an estimated reduction to
the Exchequer yield of £745 million.</p><p> </p><p>HMRC is committed to continuing
to tackle promoters and operators of tax avoidance schemes. This includes challenging
the entities and individuals who promote disguised remuneration loan schemes.</p><p>
</p><p>Promotion or operation of mass marketed tax avoidance schemes is not in and
of itself a criminal offence. However, there are a range of offences which might be
committed by those who promote tax avoidance schemes or advise on their use.</p><p>
</p><p>On that basis, while to date there have been no prosecutions of individuals
directly related to the promotion of schemes subject to the Loan Charge, a number
of individuals are currently under criminal investigation by HMRC for offences linked
to schemes subject to the Loan Charge.</p><p> </p><p>In addition to schemes subject
to the Loan Charge, since 1 April 2016, more than 20 individuals have been convicted
for offences relating to arrangements which have been promoted and marketed as tax
avoidance, including offences related to DR. These have resulted in over 100 years
of custodial sentences, the majority of which relate to promoters.</p><p> </p><p>
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