Tax Avoidance

Treasury written question – answered on 14th October 2020.

Alert me about debates like this

Photo of David Davis David Davis Conservative, Haltemprice and Howden

To ask the Chancellor of the Exchequer, what proportion of loan charge cases remained unsettled after the 30 September deadline.

Photo of David Davis David Davis Conservative, Haltemprice and Howden

To ask the Chancellor of the Exchequer, what criteria HM Revenue and Customs use to decide whether individual Loan Charge settlement discussions can continue past the 30 September settlement deadline.

Photo of David Davis David Davis Conservative, Haltemprice and Howden

To ask the Chancellor of the Exchequer, how many people subject to the Loan Charge were offered settlements (a) four weeks, (b) three weeks, (c) two weeks, (d) one week and (e) less than one week before the 30 September settlement deadline.

Photo of Jesse Norman Jesse Norman The Financial Secretary to the Treasury

At the time of the independent review of the Loan Charge, about 12,000 employers and individuals had the opportunity to avoid the Loan Charge by concluding settlements, having provided all the relevant information to HMRC by 5 April 2019. Early indications are that as at 2 October about 60 percent of these taxpayers have either settled, informed HMRC that they had instead decided to report and pay the Loan Charge, or have been taken out of scope of the Loan Charge following the Government’s changes in response to the independent review.

HMRC are continuing settlement discussions with a relatively small number of taxpayers who were prevented from meeting the 30 September deadline by exceptional circumstances beyond their control, such as recent hospitalisation. HMRC’s criteria for continuing settlement discussions beyond the 30 September deadline are:

  • The taxpayer had actively engaged in the settlement process until the occurrence of a factor, and
  • The factor is entirely outside the control of the taxpayer, and
  • The factor prevented the taxpayer from settling by 30 September, and
  • Absent the factor, the taxpayer would have been able to settle by 30 September, and
  • The taxpayer will be able, and agrees, to settle within a defined period of no more than 3 months after the 30 September.

HMRC do not hold aggregate data on when individual taxpayers were issued with settlement offers.

Does this answer the above question?

Yes1 person thinks so

No18 people think not

Would you like to ask a question like this yourself? Use our Freedom of Information site.