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<p>An independent review of the Loan Charge has already taken place. The 2019 Review,
conducted by Lord Morse, concluded that it was right for the Loan Charge to remain
in force and right for the Government to collect the tax due, but made a number of
recommendations to reduce the impact of the policy.</p><p> </p><p>The Government accepted
all but one of the 20 recommendations, and those changes are estimated to have benefitted
over 30,000 individuals, removing 11,000 from the Loan Charge entirely.</p><p> </p><p>The
charge on disguised remuneration loans is targeted at contrived tax avoidance schemes
which seek to avoid income tax and National Insurance contributions by paying users
their income in the form of loans, usually via an offshore trust. This kind of tax
avoidance deprives the Exchequer of funds to deliver vital public services.</p><p>
</p><p>Any loss of life is a tragedy, and the Government’s thoughts are with the families
of those affected. The Government will continue to work with HMRC to consider what
additional support could be provided to taxpayers who need extra help.</p>
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