Loan Charge Update

Following persistent calls from myself and colleagues from across the House the government has commissioned an independent review into the Loan Charge. 

The review, led by Sir Amyas Morse, will specifically focus on whether the Loan Charge is an appropriate response to those who have entered certain schemes and whether the changes announced by the government address the concerns of individuals who have been affected. 

Whilst the review is underway, the Loan Charge will remain in force. Those affected should continue to prepare to file a 2018/19 self-assessment return and pay the Loan Charge by 31 January 2020. However, without knowing what Sir Amyas will recommend, those in the process of settling will be able to pause and wait for the outcome of the Review before deciding whether to proceed. Individuals who are subject to the Loan Charge but who have not yet settled should still submit an information return to HMRC setting out their loan balance by 30 September 2019. 

Naturally, having campaigned on this issue for roughly two years I welcome this news and will continue to work with the Loan Charge Action Group to ensure that the concerns of all those I represent who have been affected continue to be heard.

Read the letter from the Financial Secretary to the Treasury, Jesse Norman MP, which outlines the steps the government is taking here.