Tax Avoidance

Treasury written question – answered on 7th November 2018.

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Photo of Nigel Evans Nigel Evans Conservative, Ribble Valley

To ask the Chancellor of the Exchequer, what proportion of the £3.2 billion that the Loan Charge 2019 is estimated to raise for the public purse by 2021 is projected to be recovered from scheme providers.

Photo of Nigel Evans Nigel Evans Conservative, Ribble Valley

To ask the Chancellor of the Exchequer,what proportion of the £3.2 billion that the Loan Charge 2019 is estimated to raise for the public purse by 2021 is projected to be recovered from scheme users.

Photo of Nigel Evans Nigel Evans Conservative, Ribble Valley

To ask the Chancellor of the Exchequer, how much money has been recovered for the public purse from scheme providers as a result of settlements relating to the Loan Charge 2019.

Photo of Nigel Evans Nigel Evans Conservative, Ribble Valley

To ask the Chancellor of the Exchequer, how much money has been recovered for the public purse from scheme users as a result of settlements relating to the Loan Charge 2019.

Photo of Mel Stride Mel Stride Financial Secretary to the Treasury and Paymaster General

The Government estimates that £3.2 billion from the loan charge policy will be collected from scheme users who can be employers or individuals. 75% of the estimated amount is expected from employers and 25% from individuals.

Since the announcement of the 2019 loan charge at Budget 2016, HMRC has agreed settlements on disguised remuneration schemes with employers and individuals of over 650 million pounds. More than 90% of this amount was collected from employers, with less than 10% from individuals. If scheme users repay the loan or agree a settlement for the tax that they owe with HMRC, they will not face the charge.

Providers or promoters of tax avoidance schemes are not liable for the loan charge unless they themselves have used arrangements caught by the legislation. HMRC pursues those who promote or enable tax avoidance schemes to ensure that nobody profits from selling avoidance.

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