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<p>The Government and HMRC are determined to continue to tackle promoters of tax avoidance
schemes. HMRC undertake a variety of activities such as changing promoter behaviour
using the Promoters of Tax Avoidance Schemes (POTAS) regime; challenging promoters
for failures under the Disclosure of Tax Avoidance Schemes (DOTAS) regime and pursuing
criminal investigations and arrests where appropriate.</p><p> </p><p>In December 2019
the Government announced in its response to Sir Amyas Morse’s Independent Loan Charge
Review further measures to tackle promoters of avoidance schemes. Further detail on
these measures will be set out at the Budget.</p><p> </p><p>At Budget 2016 it was
estimated that 50,000 individuals would be affected by the loan charge. As a result
of the changes announced by the Government in December 2019, it is estimated that
around 11,000 will now be taken out of scope of the loan charge altogether. In addition,
individuals who have settled or are settling their tax liability with HMRC will also
be out of scope of the charge. There is not yet a firm estimate of the number who
will choose to settle and so be out of scope of the loan charge.</p><p> </p><p>The
Government accepted all but one of the recommendations of the Independent Review.
The recommendation to introduce a write-off of tax due on the loan charge after 10
years of a time to pay arrangement, was not accepted. This would treat tax avoiders
more favourably than other individuals with HMRC debts (including tax credit claimants),
would reduce taxpayers’ incentive to pay off the debt, and would have unwelcome wider
impacts that change how HMRC and those in debt interact.</p><p> </p><p>A copy of the
Government response can be found at: <a href="https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/854490/20191219_Government_response.pdf"
target="_blank">https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/854490/20191219_Government_response.pdf</a></p>
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