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<p>Disguised Renumeration (DR) schemes seek to avoid tax by paying users their earnings
in the form of loans, usually via an offshore trust, so that neither Income Tax nor
National Insurance Contributions are paid on the income channelled through the scheme.</p><p>
</p><p>The Loan Charge was designed to tackle DR tax avoidance schemes. The Independent
Loan Charge Review led by Sir Amyas Morse assessed the impact of the policy on affected
taxpayers and concluded that it was right for the Loan Charge to remain in force,
and for the Government to seek to collect the tax due. However, the Review did also
raise a number of concerns.</p><p> </p><p>The Government accepted all but one of the
recommendations made by the Review. The Government is currently legislating to implement
these changes to the Loan Charge in the Finance Bill.</p>
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