Loan Charge

 


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.

Part of an occasional series in which CIOT tax experts explain the background to topical issues

In response to questioning from the House of Lords Economic Affairs Committee the Financial Secretary revealed that he would shortly be announcing 'clarifications' to the loan charge, including a commitment that HMRC will not apply the loan charge to a tax year which was closed on the basis of fully disclosed information.

MPs from across the political spectrum channelled the anger and distress of constituents affected by the ‘2019 loan charge’, during a 90 minute debate in Westminster Hall on Tuesday, and argued the government’s efforts should be focused on those who had enabled and promoted loan schemes rather than their often unwitting clients.

Peers held three hearings last week as part of their inquiry into the provisions of Draft Finance Bill 2018 (which focuses on Making Tax Digital and HMRC Powers). This followed an earlier hearing with representatives of tax and accountancy bodies, including the CIOT’s John Cullinane - see here