Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what discussions his Department has held with relevant stakeholders on the Upper Tribunal decision of 12 April 2021 in the context of the Government's policy on people subject to the Loan Charge.

HMRC are carefully considering the Upper Tribunal decision of 12 April.

The decision does not affect the Loan Charge legislation which was subject to an independent review in 2019. The Independent Loan Charge Review assessed the impact of the Loan Charge policy on affected taxpayers. Its careful and considered report found that it was right to tackle disguised remuneration tax avoidance schemes and that everyone should pay their fair share of tax.

The report also examined the question of from when the Loan Charge should apply and concluded that the law about the tax treatment of DR loan schemes was clear from 9 December 2010. This was when draft legislation was published setting out that income provided through schemes using third parties, such as loan schemes, would be subject to Income Tax and NICs.