Asked by: Euan Stainbank (Labour - Falkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the effectiveness of the application of the Litigation and Settlement Strategy on settlements made following disguised renumeration schemes.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government commissioned an independent review of the loan charge to help bring the matter to a close for those affected whilst ensuring fairness for all taxpayers. The Government will respond by Autumn Budget 2025.
The Litigation and Settlement Strategy (LSS) ensures that HMRC applies the law fairly and consistently. The LSS applies as much to the resolution of a dispute with a multinational corporation as it does to small business customers or individuals. This ensures every taxpayer, no matter who they are, pays the tax due under the law.
Central to the LSS is that HMRC will not settle a dispute by agreement for an amount which is less than it would reasonably expect to obtain from litigation.
Asked by: Freddie van Mierlo (Liberal Democrat - Henley and Thame)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will hold discussions with HMRC on the difference between the loan charge settlement terms offered to (a) large companies and (b) other people.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government commissioned an independent review of the loan charge to help bring the matter to a close for those affected whilst ensuring fairness for all taxpayers. The Government will respond by Autumn Budget 2025.
HMRC applies the law fairly and consistently in accordance with its published Litigation and Settlement Strategy (LSS). This ensures every taxpayer, no matter who they are, pays the tax due under the law.
Central to the LSS is that HMRC will not settle a dispute by agreement for an amount which is less than it would reasonably expect to obtain from litigation.
HMRC’s Litigation and Settlement strategy can be found on gov.uk: www.gov.uk/government/publications/litigation-and-settlement-strategy-lss
Asked by: Julian Lewis (Conservative - New Forest East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Exchequer Secretary to the Treasury's oral contribution of 1 July 2025, Official Report, column 137, for what reason her Department did not inform (a) Rt hon. and hon. Members and (b) those (i) contractors, (ii) freelance workers and (iii) small company directors who were (A) mis-sold disguised remuneration schemes and (B) subject to the Loan Charge of HMRC's Loan Charge settlement with multinational companies.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government commissioned an independent review of the Loan Charge to help bring the matter to a close for those affected whilst ensuring fairness for all taxpayers. The Government will respond by Autumn Budget 2025.
During Oral Questions on 1 July 2025, Greg Smith MP referred to comments made by an external stakeholder that were shared under the Freedom of Information Act 2000. HMRC Officials do not recognise the allegation that HMRC agreed deals with large employers allowing them to settle disguised remuneration liabilities for less than was legally due.
HMRC applies the law fairly and consistently in accordance with its published Litigation and Settlement Strategy (LSS). This ensures every taxpayer, no matter who they are, pays the tax due under the law. Central to the LSS is that HMRC will not settle a dispute by agreement for an amount which is less than it would reasonably expect to obtain from litigation.
HMRC’s Litigation and Settlement strategy can be found on gov.uk: www.gov.uk/government/publications/litigation-and-settlement-strategy-lss
Asked by: Angus MacDonald (Liberal Democrat - Inverness, Skye and West Ross-shire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 17 June 2025 to Question 60696 on the Loan Charge, which loan charge campaigner recommended Mr Ray McCann to lead the independent review.
Answered by James Murray - Chief Secretary to the Treasury
Prior to the 2024 general election, the Chancellor committed to an independent review of the Loan Charge. Following the election, I began pursuing this matter on her behalf, and met with campaigners, tax experts, and some of those affected.
Mr McCann was suggested as a potential reviewer at a meeting on 23 July 2024, to which I invited stakeholders who have campaigned on the issue. The meeting was attended by the hon. Member for Mid Buckinghamshire (Co-Chair of the Loan Charge and Taxpayer Fairness All-Party Parliamentary Group), Keith Gordon (a tax Barrister), Sarah Gabbai (a tax lawyer) and representatives from the Loan Charge Action Group.
Asked by: Desmond Swayne (Conservative - New Forest West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent representations has he received on section 684 notices.
Answered by Nigel Huddleston - Shadow Secretary of State for Culture, Media and Sport
In May 2022, the Court of Appeal confirmed that HMRC could use provisions in tax legislation (section 684(7A)(b) of the Income Tax (Earnings and Pensions) Act 2003). HMRC is using these provisions in line with the Court of Appeal judgment.
The Government has received representations about s684(7A)(b) from several Members on behalf of their constituents, as well as the All Party Parliamentary Group on the Loan Charge and Taxpayer Fairness.
Asked by: Liz Saville Roberts (Plaid Cymru - Dwyfor Meirionnydd)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Loan Charge and tax years that are subject to an open enquiry, if he will make an assessment of the potential merits of introducing a time limit by which all open enquiries must be concluded.
Answered by Lucy Frazer
The Loan Charge was introduced to ensure fairness for all taxpayers, including those who did not use Disguised Remuneration schemes. A time limit on the conclusion of Loan Charge related cases would not be fair or practical.
HMRC is delivering a comprehensive compliance programme to support relevant taxpayers to settle their Loan Charge liabilities. The progression of this work is dependent, in part, on the cooperation of those taxpayers.
When HMRC takes formal action, such as issuing a closure notice, determination or assessment, some taxpayers may want to appeal a HMRC decision or exercise their right to litigate which could take to time resolve.
Taxpayers have a right to apply to the First Tier Tribunal for an enquiry to be closed. One of the grounds for making such an application is if there has been an excessive delay during which a taxpayer has not received any communication from HMRC.
HMRC will continue working with taxpayers to help them get their tax right and get out of avoidance as soon as possible.