Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will order an independent review of the loan charge.

The Loan Charge was independently reviewed by Lord Morse in 2019, who considered the impacts of the policy on individuals. The Government recognised the impact of the Loan Charge and accepted 19 of the 20 recommendations made by Lord Morse. These changes, such as removing loans made before 9 December 2010 from the scope of the Loan Charge, reduced the impact of the policy and removed aspects which were of wider concern.

However, taxpayers can still face large tax bills which may have significant impact. That is why HMRC puts support for those affected at the core of its work to collect the Loan Charge and bring cases to settlement.

As well as the options available for managing tax bills, individuals affected by the Loan Charge are also supported by HMRC’s Extra Support teams. These are teams of trained advisors who, where appropriate, signpost taxpayers to Voluntary and Community organisations. HMRC and Samaritans are currently working together to deliver an 18-month project to further strengthen the support offered to taxpayers.

There are no plans for a further independent review.