Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether taxpayers with outstanding Loan Charge liabilities who have continued to make payments under a Time to Pay arrangement since the Government announced its review of the Loan Charge, will have those payments taken into account when their liabilities are recalculated under the revised settlement framework.

At Budget 2024, the Government committed to a new independent review of the Loan Charge. The purpose of the review was to bring the matter to a close for people who have not settled and paid their Loan Charge liabilities. The Review was published at Budget 2025.

The Government has accepted all but one of the Review’s recommendations, and in some areas has gone further. The Government has introduced legislation in Finance Act 2026 to provide for a generous new settlement offer which it hopes maximises the opportunity for individuals to come forward and settle. I am committed to delivering the Government’s ambition to bring this matter to a close for as many customers as possible.

Where a taxpayer within scope of the new settlement opportunity has already settled but not yet fully paid their Loan Charge liability, any payments already made will be credited against the new settlement opportunity amount. HMRC will not refund payments that have already been made.

HMRC began contacting customers to notify them of their eligibility for the new settlement opportunity from January 2026. When the new settlement opportunity is fully enacted, HMRC will contact customers again, in stages, to explain what it means for them based on their specific circumstances.

The Government’s response to the review represents a fair and proportionate attempt to provide a route to resolution for those who have not yet been able to settle with HMRC. In turn, this requires those individuals to now come forward and engage with HMRC in good faith.