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>
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>
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>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/3991", "label" : {"_value" : "Biography information for Jesse Norman"} } , "answeringMemberConstituency" : {"_value" : "Hereford and South Herefordshire"} , "answeringMemberPrinted" : {"_value" : "Jesse Norman"} , "dateOfAnswer" : {"_value" : "2020-06-29", "_datatype" : "dateTime"} , "groupedQuestionUIN" : {"_value" : "63318"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2020-06-29T16:47:12.863Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2020-06-23", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Disguised Remuneration Loan Charge Review"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Chancellor of the Exchequer, what plans he has to bring forward legislative proposals to implement the recommendations contained in Sir Amyas Morse's Loan Charge review published in December 2019.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/4048", "label" : {"_value" : "Biography information for Caroline Nokes"} } , "tablingMemberConstituency" : {"_value" : "Romsey and Southampton North"} , "tablingMemberPrinted" : [{"_value" : "Caroline Nokes"} ], "uin" : "63317"} , {"_about" : "http://data.parliament.uk/resources/1217052", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1217052/answer", "answerText" : {"_value" : "
An estimated 1,000 individuals and 1,000 employers who have already settled their disguised remuneration liability will be due a repayment of voluntary restitution.<\/p>
<\/p>
HMRC do not have estimates of the number who have entered insolvency or sold properties.<\/p>
<\/p>
HMRC currently estimate that about £380m of voluntary restitution could be refunded to employers and individuals as a result of the change, with the vast majority estimated to be due to employers. The final value could depend on whether all eligible taxpayers claim their refund and whether, in line with the recommendation of the independent review accepted by the Government, refunds need to be reduced to prevent an unintended windfall, for example where an employer has enjoyed corporation tax relief on the voluntary restitution that they paid.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/3991", "label" : {"_value" : "Biography information for Jesse Norman"} } , "answeringMemberConstituency" : {"_value" : "Hereford and South Herefordshire"} , "answeringMemberPrinted" : {"_value" : "Jesse Norman"} , "dateOfAnswer" : {"_value" : "2020-06-29", "_datatype" : "dateTime"} , "groupedQuestionUIN" : {"_value" : "63197"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2020-06-29T09:07:06.147Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2020-06-23", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Disguised Remuneration Loan Charge Review"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Chancellor of the Exchequer, with reference to Sir Amyas Morse's Review of the Loan Charge, what estimate he has made of the the number of people now due for a repayment of Voluntary Restitution relating to payroll loan schemes covered by the 2019 Loan Charge; and of those cases how many (a) companies and individuals have already entered into insolvency and (b) individuals are known to have sold a property in order to pay the Voluntary Restitution which will now be repaid.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/54", "label" : {"_value" : "Biography information for Sir Julian Lewis"} } , "tablingMemberConstituency" : {"_value" : "New Forest East"} , "tablingMemberPrinted" : [{"_value" : "Dr Julian Lewis"} ], "uin" : "63196"} , {"_about" : "http://data.parliament.uk/resources/1217056", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1217056/answer", "answerText" : {"_value" : "
An estimated 1,000 individuals and 1,000 employers who have already settled their disguised remuneration liability will be due a repayment of voluntary restitution.<\/p>
<\/p>
HMRC do not have estimates of the number who have entered insolvency or sold properties.<\/p>
<\/p>
HMRC currently estimate that about £380m of voluntary restitution could be refunded to employers and individuals as a result of the change, with the vast majority estimated to be due to employers. The final value could depend on whether all eligible taxpayers claim their refund and whether, in line with the recommendation of the independent review accepted by the Government, refunds need to be reduced to prevent an unintended windfall, for example where an employer has enjoyed corporation tax relief on the voluntary restitution that they paid.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/3991", "label" : {"_value" : "Biography information for Jesse Norman"} } , "answeringMemberConstituency" : {"_value" : "Hereford and South Herefordshire"} , "answeringMemberPrinted" : {"_value" : "Jesse Norman"} , "dateOfAnswer" : {"_value" : "2020-06-29", "_datatype" : "dateTime"} , "groupedQuestionUIN" : {"_value" : "63196"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2020-06-29T09:07:06.223Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2020-06-23", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Disguised Remuneration Loan Charge Review"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Chancellor of the Exchequer, with reference to Sir Amyas Morse's Review of the Loan Charge, what estimate he has made of the (a) amount that HMRC will repay in Voluntary Restitutions in relation to payroll loan schemes covered by the 2019 Loan Charge already received, (b) number of employers that will receive a payment and (c) the value of the repayments received by employers.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/54", "label" : {"_value" : "Biography information for Sir Julian Lewis"} } , "tablingMemberConstituency" : {"_value" : "New Forest East"} , "tablingMemberPrinted" : [{"_value" : "Dr Julian Lewis"} ], "uin" : "63197"} , {"_about" : "http://data.parliament.uk/resources/1194604", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1194604/answer", "answerText" : {"_value" : "
Disguised remuneration (DR) schemes have been used since the 1990s.<\/p>
<\/p>
The Government announced targeted anti-avoidance legislation to tackle DR schemes in a written ministerial statement in 2010, and introduced it in 2011. This aimed to put beyond doubt that DR schemes are ineffective and to discourage their use.<\/p>
<\/p>
Despite the Government\u2019s attempts to eliminate the use of these schemes it was clear by Budget 2016 that DR schemes continued to proliferate. That is why the Government announced a package of measures to ensure DR scheme users pay their fair share of tax. These measures, including the Loan Charge, strengthened existing rules and aimed to draw a line under the use of DR tax avoidance schemes. This was legislated for in the Finance (No.2) Act 2017.<\/p>
<\/p>
HMT officials work closely with colleagues on all tax policy, including on the Government\u2019s response to the use of DR tax avoidance schemes and on the introduction of the Loan Charge in Finance (No.2) Act 2017.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/3991", "label" : {"_value" : "Biography information for Jesse Norman"} } , "answeringMemberConstituency" : {"_value" : "Hereford and South Herefordshire"} , "answeringMemberPrinted" : {"_value" : "Jesse Norman"} , "dateOfAnswer" : {"_value" : "2020-05-19", "_datatype" : "dateTime"} , "groupedQuestionUIN" : {"_value" : "45079"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2020-05-19T10:32:08.943Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2020-05-11", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Disguised Remuneration Loan Charge Review"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Chancellor of the Exchequer, with reference to page 4 of the Independent Loan Charge Review: report on the policy and its implementation which states that the law on loan arrangements became clear in 2010, for what reasons the Finance Act 2017 included legislation on those arrangements.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/1585", "label" : {"_value" : "Biography information for Stephen Hammond"} } , "tablingMemberConstituency" : {"_value" : "Wimbledon"} , "tablingMemberPrinted" : [{"_value" : "Stephen Hammond"} ], "uin" : "45077"} , {"_about" : "http://data.parliament.uk/resources/1194607", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1194607/answer", "answerText" : {"_value" : "
Disguised remuneration (DR) schemes have been used since the 1990s.<\/p>
<\/p>
The Government announced targeted anti-avoidance legislation to tackle DR schemes in a written ministerial statement in 2010, and introduced it in 2011. This aimed to put beyond doubt that DR schemes are ineffective and to discourage their use.<\/p>
<\/p>
Despite the Government\u2019s attempts to eliminate the use of these schemes it was clear by Budget 2016 that DR schemes continued to proliferate. That is why the Government announced a package of measures to ensure DR scheme users pay their fair share of tax. These measures, including the Loan Charge, strengthened existing rules and aimed to draw a line under the use of DR tax avoidance schemes. This was legislated for in the Finance (No.2) Act 2017.<\/p>
<\/p>
HMT officials work closely with colleagues on all tax policy, including on the Government\u2019s response to the use of DR tax avoidance schemes and on the introduction of the Loan Charge in Finance (No.2) Act 2017.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/3991", "label" : {"_value" : "Biography information for Jesse Norman"} } , "answeringMemberConstituency" : {"_value" : "Hereford and South Herefordshire"} , "answeringMemberPrinted" : {"_value" : "Jesse Norman"} , "dateOfAnswer" : {"_value" : "2020-05-19", "_datatype" : "dateTime"} , "groupedQuestionUIN" : {"_value" : "45077"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2020-05-19T10:32:08.99Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2020-05-11", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Disguised Remuneration Loan Charge Review"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Chancellor of the Exchequer, with reference to Sir Amyas Morse's Loan Charge review published in December 2019, what discussions his Department had with HMRC on changing loan charge arrangements prior to the introduction of the 2017 Finance Bill.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/1585", "label" : {"_value" : "Biography information for Stephen Hammond"} } , "tablingMemberConstituency" : {"_value" : "Wimbledon"} , "tablingMemberPrinted" : [{"_value" : "Stephen Hammond"} ], "uin" : "45079"} , {"_about" : "http://data.parliament.uk/resources/1168768", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1168768/answer", "answerText" : {"_value" : "
The Government published Sir Amyas Morse\u2019s independent review of the Loan Charge on 20 December, alongside the Government\u2019s response to his recommendations. Further detail can be found here: https://www.gov.uk/government/publications/disguised-remuneration-independent-loan-charge-review/guidance<\/a><\/p>"}
, "answeringMember" : {"_about" : "http://data.parliament.uk/members/3991", "label" : {"_value" : "Biography information for Jesse Norman"}
}
, "answeringMemberConstituency" : {"_value" : "Hereford and South Herefordshire"}
, "answeringMemberPrinted" : {"_value" : "Jesse Norman"}
, "dateOfAnswer" : {"_value" : "2020-01-07", "_datatype" : "dateTime"}
, "groupedQuestionUIN" : {"_value" : "321"}
, "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"}
, "questionFirstAnswered" : [{"_value" : "2020-01-07T16:41:39.797Z", "_datatype" : "dateTime"}
]}
, "answeringDeptId" : {"_value" : "14"}
, "answeringDeptShortName" : {"_value" : "Treasury"}
, "answeringDeptSortName" : {"_value" : "Treasury"}
, "date" : {"_value" : "2019-12-20", "_datatype" : "dateTime"}
, "hansardHeading" : {"_value" : "Disguised Remuneration Loan Charge Review"}
, "houseId" : {"_value" : "1"}
, "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"}
}
], "questionText" : "To ask the Chancellor of the Exchequer, when he plans to publish Sir Amyas Morse's review of the Loan Charge.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"}
, "tablingMember" : {"_about" : "http://data.parliament.uk/members/4107", "label" : {"_value" : "Biography information for Dame Harriett Baldwin"}
}
, "tablingMemberConstituency" : {"_value" : "West Worcestershire"}
, "tablingMemberPrinted" : [{"_value" : "Harriett Baldwin"}
], "uin" : "289"}
, {"_about" : "http://data.parliament.uk/resources/1168778", "AnsweringBody" : [{"_value" : "Treasury"}
], "answer" : {"_about" : "http://data.parliament.uk/resources/1168778/answer", "answerText" : {"_value" : " The Government published Sir Amyas Morse\u2019s independent review of the Loan Charge on 20 December, alongside the Government\u2019s response to his recommendations. Further detail can be found here: https://www.gov.uk/government/publications/disguised-remuneration-independent-loan-charge-review/guidance<\/a><\/p>"}
, "answeringMember" : {"_about" : "http://data.parliament.uk/members/3991", "label" : {"_value" : "Biography information for Jesse Norman"}
}
, "answeringMemberConstituency" : {"_value" : "Hereford and South Herefordshire"}
, "answeringMemberPrinted" : {"_value" : "Jesse Norman"}
, "dateOfAnswer" : {"_value" : "2020-01-07", "_datatype" : "dateTime"}
, "groupedQuestionUIN" : {"_value" : "289"}
, "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"}
, "questionFirstAnswered" : [{"_value" : "2020-01-07T16:41:39.767Z", "_datatype" : "dateTime"}
]}
, "answeringDeptId" : {"_value" : "14"}
, "answeringDeptShortName" : {"_value" : "Treasury"}
, "answeringDeptSortName" : {"_value" : "Treasury"}
, "date" : {"_value" : "2019-12-20", "_datatype" : "dateTime"}
, "hansardHeading" : {"_value" : "Disguised Remuneration Loan Charge Review"}
, "houseId" : {"_value" : "1"}
, "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"}
}
], "questionText" : "To ask the Chancellor of the Exchequer, when he plans to publish the independent review of the Disguised Remuneration Loan Charge.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"}
, "tablingMember" : {"_about" : "http://data.parliament.uk/members/4368", "label" : {"_value" : "Biography information for Neil Coyle"}
}
, "tablingMemberConstituency" : {"_value" : "Bermondsey and Old Southwark"}
, "tablingMemberPrinted" : [{"_value" : "Neil Coyle"}
], "uin" : "321"}
, {"_about" : "http://data.parliament.uk/resources/1168470", "AnsweringBody" : [{"_value" : "Treasury"}
], "answer" : {"_about" : "http://data.parliament.uk/resources/1168470/answer", "answerText" : {"_value" : " The Government published Sir Amyas Morse\u2019s independent review of the Loan Charge on 20 December, alongside the Government\u2019s response to his recommendations. The Government welcomes Sir Amyas\u2019 recognition that disguised remuneration schemes are a form of tax avoidance and that action was needed to tackle their use. However, the Government recognises concerns raised by the Review about the design of the Loan Charge and the impact on those liable to pay it and is therefore accepting all but one of the Review\u2019s recommendations. The Government will ensure taxpayers have sufficient time to consider the impact of these changes on their tax position and individuals can now defer submitting their tax return and paying their Loan Charge liability until 30 September 2020, without incurring any penalties or interest.<\/p> <\/p> <\/p>"}
, "answeringMember" : {"_about" : "http://data.parliament.uk/members/3991", "label" : {"_value" : "Biography information for Jesse Norman"}
}
, "answeringMemberConstituency" : {"_value" : "Hereford and South Herefordshire"}
, "answeringMemberPrinted" : {"_value" : "Jesse Norman"}
, "dateOfAnswer" : {"_value" : "2020-01-07", "_datatype" : "dateTime"}
, "groupedQuestionUIN" : {"_value" : "106"}
, "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"}
, "questionFirstAnswered" : [{"_value" : "2020-01-07T16:36:10.567Z", "_datatype" : "dateTime"}
]}
, "answeringDeptId" : {"_value" : "14"}
, "answeringDeptShortName" : {"_value" : "Treasury"}
, "answeringDeptSortName" : {"_value" : "Treasury"}
, "date" : {"_value" : "2019-12-19", "_datatype" : "dateTime"}
, "hansardHeading" : {"_value" : "Disguised Remuneration Loan Charge Review"}
, "houseId" : {"_value" : "1"}
, "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"}
}
], "questionText" : "To ask the Chancellor of the Exchequer, if he will publish Sir Amyas Morse's review of the Loan Charge on 8 January 2020; and if he will make an oral statement on that day.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"}
, "tablingMember" : {"_about" : "http://data.parliament.uk/members/4064", "label" : {"_value" : "Biography information for Mr Steve Baker"}
}
, "tablingMemberConstituency" : {"_value" : "Wycombe"}
, "tablingMemberPrinted" : [{"_value" : "Mr Steve Baker"}
], "uin" : "105"}
, {"_about" : "http://data.parliament.uk/resources/1149006", "AnsweringBody" : [{"_value" : "Treasury"}
], "answer" : {"_about" : "http://data.parliament.uk/resources/1149006/answer", "answerText" : {"_value" : " The Chancellor commissioned Sir Amyas Morse, former CEO of the National Audit Office, to lead an independent Review to consider the impact of the Loan Charge, focusing on individuals who entered directly into disguised remuneration schemes.<\/p> <\/p> Sir Amyas has a strong track record of holding the Government to account and is widely respected, as was emphasised by colleagues across the House in a debate of 6 March 2019.<\/p> <\/p>