Disguised remuneration: Independent loan charge review

12 September 2019

The Chancellor, Sajid Javid, has commissioned an independent review of the Disguised Remuneration Loan Charge. The loan charge remains in force during the review.


The Loan Charge was introduced to tackle contrived tax avoidance schemes where a person’s income is paid as a loan and not repaid. The government is clear that disguised remuneration schemes don’t work and their use is unfair to 99.8% of taxpayers who did not use these schemes.


However, the government recognises that concerns have been raised about the Loan Charge policy as a mechanism for drawing a line under these schemes.


The independent review will be led by Sir Amyas Morse, former Chief Executive and Comptroller and Auditor General of the National Audit Office. The review will focus on the impact of the Loan Charge on individuals who have directly entered into disguised remuneration schemes.


The review will report and provide independent recommendations to the government by mid-November. While the review is ongoing, the Loan Charge remains in force, in line with current legislation.


The Terms of Reference for the independent loan charge review have been made available.


The government will consider and respond to the outcome of the review once it has concluded.


Follow this link to find out what it means for you if you have used a disguised remuneration scheme and are affected by the loan charge.