Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the number of people subject to Loan Charge repayments who have been made bankrupt.
No estimate can be provided for the number of people who have fallen into debt or who have been declared bankrupt that are subject to the Loan Charge.
Where debts arise, HMRC are not always the only creditor. Some individuals are declared bankrupt as a result of a non-HMRC debt and some individuals may choose to enter insolvency themselves based on their overall financial position.
HMRC only ever considers insolvency as a last resort, and they encourage taxpayers to get in contact to agree the best way to settle their tax debts. To date, HMRC has not initiated insolvency proceedings against any taxpayer for a Loan Charge debt.
Anyone who is worried about being able to pay what they owe should contact HMRC, who may be able to agree an instalment arrangement based on the individuals’ financial circumstances, and there is no maximum length.