Treasury ministers should review and respond to the loan charge review within days of a new government being formed, the Chartered Institute of Taxation (CIOT) has said.
This follows the news that Sir Amyas Morse’s review of the charge will not be submitted to ministers until after the December 12 general election. Those facing the charge are required to pay it by the self-assessment deadline of January 31 2020.
Glyn Fullelove, CIOT President, said:
“Further delay and uncertainty around the loan charge is deeply regrettable, and risks confusion for both taxpayers and HMRC around what is required to be done before the end of January.
“Whoever is in government after the general election needs to give this matter their urgent attention, responding to the review and setting out the resulting requirements before the end of December.
“The closer to the self-assessment deadline we get without this uncertainty being resolved, the stronger the case for extending deadlines for those affected, or saying no penalties will be charged, for a period at least, for late payment of loan charge-related tax, irrespective of the conclusions of the review. Orderly payments of the correct tax ultimately due will be much preferable to rushed reporting and payments, with over and underpayments inevitably resulting.
“We will be writing to the responsible minister immediately they are appointed after the election, urging them to act immediately on this matter.”