Asked by: Neil Coyle (Labour - Bermondsey and Old Southwark)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to review Section 684 activities with reference to the Loan Charge.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Section 684 of the Income Tax (Earnings and Pensions) Act (ITEPA) 2003 provides for the Pay As You Earn (PAYE) regulations. In 2022, the Court of Appeal considered HMRC’s use of section 684(7A)(b) in relation to a disguised remuneration scheme.
The Chancellor and I know that the loan charge is a very important matter for many members and their constituents. We have been considering this matter since taking office and will provide an update in due course.
Oct. 15 2024
Source Page: THE KING (on the application of) (1) FLUID SYSTEMS TECHNOLOGIES (SCOTLAND) LIMITED (2) LONDON FLUID SYSTEM TECHNOLOGIES LIMITED (3) AIREDALE CHEMICAL COMPANY LIMITED v THE COMMISSIONERS FOR HIS MAJESTY’S REVENUE AND CUSTOMS [2024] UKUT 00322 (TCC)Found: The judicial review , in relation to which permission was granted by the Administrative Court and then
Oct. 18 2024
Source Page: GAAR Advisory Panel opinion of 7 August 2024: Reward through creation and sale of a pension obligation with consideration paid to the owner of the pension obligationFound: paragraph 3 of Schedule 43 dated 13 October 2023.This opinion notice has been reached based on the review
Feb. 24 2025
Source Page: THE KING (on the application of) AIREDALE CHEMICAL COMPANY LIMITED v THE COMMISSIONERS FOR HIS MAJESTY’S REVENUE AND CUSTOMS [2025] UKUT 00065 (TCC)Found: The judicial review, in relation to which permission was granted by the Administrative Court and then
Mentions:
1: James Frith (Lab - Bury North) My constituent Chris is among many people affected by the loan charge, which applies to �disguised remuneration - Speech Link
2: Lucy Powell (LAB - Manchester Central) I recognise the concern about the loan charge scheme, as do the Government, and we are committed to ensuring - Speech Link
3: Leigh Ingham (Lab - Stafford) This week, a youth strategy review was announced, which could not be more welcome in my constituency - Speech Link
Correspondence Mar. 19 2024
Committee: Treasury Committee (Department: HM Treasury)Found: The use of disguised remuneration schemes caught by the Loan Charge legislation (December 2010 to April
Asked by: Daisy Cooper (Liberal Democrat - St Albans)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 12 March 2024 to Question 17136 on Tax Avoidance, whether it is HMRC’s policy to seek to recover tax due for liabilities incurred before December 2010, where a taxpayer has not received correspondence relating to an open compliance check for longer than 12 months.
Answered by Nigel Huddleston
In the 2019 Independent Loan Charge Review, Lord Morse recommended that the Loan Charge should only apply to loans made on or after 9 December 2010. The Government accepted this recommendation.
However, Lord Morse was also clear that, for years before this date, where there is an open enquiry or assessment under appeal HM Revenue and Customs (HMRC) should still have the ability to pursue the tax due under the existing rules. HMRC has proceeded on this basis.
HMRC continues to work with and support taxpayers to resolve all outstanding enquiries and assessments relating to their use of disguised remuneration (DR) loans, in accordance with their published DR settlement terms and HMRC’s Litigation and Settlement Strategy
As part of its overall compliance processes and its commitment to update taxpayers at least annually, all of these taxpayers should have received correspondence from HMRC in the last 12 months.
Oct. 14 2009
Source Page: Ofcom review of additional charges: Including non-direct debit charges and early termination charges. 180 p.Found: Ofcom review of additional charges 4 Charge / contractual term Ofcom™s final decision Initial minimum
Asked by: Sammy Wilson (Democratic Unionist Party - East Antrim)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many notices under section 684 of the Income Tax Act 2007 have been issued to individuals with Loan Charge liabilities incurred before December 2010.
Answered by Nigel Huddleston
In the context of Disguised Remuneration (DR), HM Revenue and Customs (HMRC) has in some circumstances used the power provided under s.684(7A)(b) of the Income Tax (Earnings and Pensions) Act 2003 (the Discretion) to collect the tax owed; and since 2022, HMRC has issued around 2,700 decisions using the Discretion.
In his independent review, Lord Morse recommended that the Loan Charge should no longer apply to loans made before 9 December 2010. However, Lord Morse said “HMRC should continue being able to settle and investigate cases prior to this point under their normal powers where they have appropriate grounds, and a legal basis, to do so”.
In line with this recommendation, HMRC is still seeking to recover the tax due where it had taken the necessary steps in the past to ensure there is an open tax enquiry or assessment which gives it the legal basis to do so.
In May 2022, the Court of Appeal said that HMRC could consider using the Discretion to collect tax directly from the individual who received income through a DR scheme.
Asked by: Sammy Wilson (Democratic Unionist Party - East Antrim)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many section 684 notices were issued by HMRC in each of the last five years.
Answered by Nigel Huddleston
In the context of Disguised Remuneration (DR), HM Revenue and Customs (HMRC) has in some circumstances used the power provided under s.684(7A)(b) of the Income Tax (Earnings and Pensions) Act 2003 (the Discretion) to collect the tax owed; and since 2022, HMRC has issued around 2,700 decisions using the Discretion.
In his independent review, Lord Morse recommended that the Loan Charge should no longer apply to loans made before 9 December 2010. However, Lord Morse said “HMRC should continue being able to settle and investigate cases prior to this point under their normal powers where they have appropriate grounds, and a legal basis, to do so”.
In line with this recommendation, HMRC is still seeking to recover the tax due where it had taken the necessary steps in the past to ensure there is an open tax enquiry or assessment which gives it the legal basis to do so.
In May 2022, the Court of Appeal said that HMRC could consider using the Discretion to collect tax directly from the individual who received income through a DR scheme.