PARLIAMENTARY WRITTEN QUESTION
Disguised Remuneration Loan Charge Review (23 June 2020)

To ask the Chancellor of the Exchequer, what plans he has to bring forward legislative proposals to implement the recommendations contained in Sir Amyas Morse's Loan Charge review published in December 2019.

Asked by:
Caroline Nokes (Conservative)

Disguised Renumeration (DR) schemes seek to avoid tax by paying users their earnings in the form of loans, usually via an offshore trust, so that neither Income Tax nor National Insurance Contributions are paid on the income channelled through the scheme.

The Loan Charge was designed to tackle DR tax avoidance schemes. The Independent Loan Charge Review led by Sir Amyas Morse assessed the impact of the policy on affected taxpayers and concluded that it was right for the Loan Charge to remain in force, and for the Government to seek to collect the tax due. However, the Review did also raise a number of concerns.

The Government accepted all but one of the recommendations made by the Review. The Government is currently legislating to implement these changes to the Loan Charge in the Finance Bill.

Answered by:
Jesse Norman (Conservative)
29 June 2020