Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will take steps to enable individuals who were unwittingly taken advantage of by loan charge promoters to enter into a settlement with HMRC over loan schemes without having to declare wrongdoing and state that they knew they had avoided tax.

HM Revenue and Customs (HMRC) have provided several formal opportunities for taxpayers to settle their use of disguised remuneration (DR) schemes, both prior and subsequent to the announcement of the introduction of the loan charge.

Whenever a settlement agreement is agreed with HMRC, there must be a legally binding contract. HMRC do not require individuals settling their DR use to admit to wrongdoing, or to declare that they knew they had avoided tax, when agreeing these contracts.

Individuals who wish to use the 5 or 7 year payment instalment arrangements available under the current settlement terms do have to confirm that they are no longer engaged with tax avoidance (as required under the published terms), and this is acknowledged within the settlement contract. Agreeing to this term does not require the taxpayer to declare that they were knowingly engaged in tax avoidance in the past.