Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential merits of setting a maximum settlement reduction of £70,000 under the revised loan charge settlement arrangements.

The Government commissioned an independent review of the loan charge to bring the matter to a close for those affected, ensure fairness for all taxpayers and ensure that appropriate support is in place for those subject to the loan charge.

Because of the decisions the Government has taken, around 30 percent of people within scope of the review could have their liabilities removed entirely. Most other individuals will see their liabilities reduced by at least half.

The most serious cases within scope of the Loan Charge review include instances where an individual has avoided more than £5 million of tax through disguised remuneration use. The Government does not believe it is right to offer this group further substantial reductions to their liabilities. The £70,000 cap was introduced to ensure fairness for all taxpayers, including the vast majority who have never used disguised remuneration schemes.

Over 80% of individuals that are within scope of the settlement opportunity will not be affected by the cap.