Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps he is taking to ensure that the provisions of (a) amendment to the promoters of tax avoidance schemes and (b) schedule 16 to the Finance (No.2) Act 2017 are used to secure penalties for promoters of loan charge schemes.

The Government and HMRC are determined to continue to tackle promoters of tax avoidance schemes. This includes using the Promoters of Tax Avoidance Schemes (POTAS) and Enablers penalty regimes to change behaviours of those promoting or enabling the sale and use of avoidance schemes.

At the Budget, the Government announced that it will legislate in Finance Bill 2020-21 to strengthen the Promoters of Tax Avoidance Schemes (POTAS) and the Enablers penalty regimes. This includes measures, which are designed to ensure that: HMRC are better able to issue stop notices to promoters of schemes that do not work; POTAS obligations are fulfilled by promoters including where they have tried to abuse corporate structures; and HMRC can obtain information about the enabling of abusive schemes as soon as they are identified.

On 19 March HMRC published a new strategy for tackling promoters of tax avoidance schemes. This strategy outlines the range of policy, operational and communications interventions that are under way and being developed to drive those who promote tax avoidance schemes out of the market.