Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate he has made of the potential impact of the loan charge on trends in the level of bankruptcies.

Where debts arise, HMRC are not always the only creditor. Some individuals are declared bankrupt as a result of a non-HMRC debt or may choose to enter insolvency proceedings themselves, based on their overall financial position.

HMRC only ever considers insolvency as a last resort. They encourage taxpayers to get in contact with them, with a view to agreeing the best way to settle the tax debts.

To date, HMRC has not initiated insolvency proceedings against any taxpayer for a Loan Charge debt.