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 - Financial Secretary (HM Treasury)
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 - Secretary of State for Culture, Media and Sport
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.