Asked by: Robert Halfon (Conservative - Harlow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many promoters and operators of schemes subject to the loan charge have been prosecuted for promoting and operating those schemes.
Answered by Lucy Frazer
The Loan Charge was announced at Budget 2016 as part of a package of measures to tackle Disguised Remuneration (DR) tax avoidance. The forecast was last revised at Spring Budget 2021. There was an estimated overall Exchequer yield of £3.3 billion for the entire package, including the Loan Charge.
In September 2019, the Government commissioned an Independent Review into the Loan Charge which was led by Lord Morse. The Government accepted 19 of the 20 recommendations made by the review. Changes to the Loan Charge were estimated to reduce the forecast yield. At Budget 2020, the changes were costed as a separate measure, with an estimated reduction to the Exchequer yield of £745 million.
HMRC is committed to continuing to tackle promoters and operators of tax avoidance schemes. This includes challenging the entities and individuals who promote disguised remuneration loan schemes.
Promotion or operation of mass marketed tax avoidance schemes is not in and of itself a criminal offence. However, there are a range of offences which might be committed by those who promote tax avoidance schemes or advise on their use.
On that basis, while to date there have been no prosecutions of individuals directly related to the promotion of schemes subject to the Loan Charge, a number of individuals are currently under criminal investigation by HMRC for offences linked to schemes subject to the Loan Charge.
In addition to schemes subject to the Loan Charge, since 1 April 2016, more than 20 individuals have been convicted for offences relating to arrangements which have been promoted and marketed as tax avoidance, including offences related to DR. These have resulted in over 100 years of custodial sentences, the majority of which relate to promoters.
Asked by: Robert Halfon (Conservative - Harlow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate his Department has made of the revenue that will accrue to the Exchequer from the loan charge.
Answered by Lucy Frazer
The Loan Charge was announced at Budget 2016 as part of a package of measures to tackle Disguised Remuneration (DR) tax avoidance. The forecast was last revised at Spring Budget 2021. There was an estimated overall Exchequer yield of £3.3 billion for the entire package, including the Loan Charge.
In September 2019, the Government commissioned an Independent Review into the Loan Charge which was led by Lord Morse. The Government accepted 19 of the 20 recommendations made by the review. Changes to the Loan Charge were estimated to reduce the forecast yield. At Budget 2020, the changes were costed as a separate measure, with an estimated reduction to the Exchequer yield of £745 million.
HMRC is committed to continuing to tackle promoters and operators of tax avoidance schemes. This includes challenging the entities and individuals who promote disguised remuneration loan schemes.
Promotion or operation of mass marketed tax avoidance schemes is not in and of itself a criminal offence. However, there are a range of offences which might be committed by those who promote tax avoidance schemes or advise on their use.
On that basis, while to date there have been no prosecutions of individuals directly related to the promotion of schemes subject to the Loan Charge, a number of individuals are currently under criminal investigation by HMRC for offences linked to schemes subject to the Loan Charge.
In addition to schemes subject to the Loan Charge, since 1 April 2016, more than 20 individuals have been convicted for offences relating to arrangements which have been promoted and marketed as tax avoidance, including offences related to DR. These have resulted in over 100 years of custodial sentences, the majority of which relate to promoters.
Asked by: Robert Halfon (Conservative - Harlow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, for what reason local authorities are not able to make the £150 council tax rebate via residents' council tax bills rather than making a direct payment to council tax payers.
Answered by Simon Clarke
In most cases the rebate will be delivered as a direct payment. This allows support to be provided up front rather than spread across the usual council tax instalments and means that households that don’t pay council tax are not disadvantaged.
Councils can, however, offer the option of a credit to council tax accounts to non-direct debit holders as part of the claims process. This is intended to help speed up the claims process (and limit the administrative burden on local authorities), and in recognition that not all taxpayers will want to provide payment details where not already held.
Asked by: Robert Halfon (Conservative - Harlow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what method local authorities will use to distribute the Council Tax Rebate.
Answered by Simon Clarke
The Department for Levelling Up, Housing and Communities has published guidance to local authorities on administering the council tax rebate. This can be found in the link below:
The council tax rebate 2022-23 – billing authority guidance - GOV.UK (www.gov.uk)