Loan charge review will only be reported to new government
07 November 2019
In a letter sent via email from MP Jesse Norman to Sir Amyas Morse, it has been confirmed that the independent review into the Loan Charge will only be submitted to the new government that is formed following the general election on 12 December.
Following the dissolution of Parliament on 6 November, Purdah rules apply which prevent certain government matters from being discussed prior to an election. The letter confirms that the review was originally due to conclude in mid-November, for presentation to the Chancellor of the Exchequer and the Financial Secretary to the Treasury accompanied by a set of recommendations. As no decisions can be made in the run up to an election, the findings will now be presented to the new government once it has been established.
The Loan Charge is an anti-tax-avoidance measure that was introduced in the Finance Act 2016 and relates to disguised remuneration schemes. The government announced the review of the loan charge back in September 2019 as the Chancellor wanted to investigate the impact it would have on any affected individuals. There is guidance available for those that have used a disguised remuneration scheme or anyone who thinks that they might be affected by the loan charge. It is important to remember that even amidst political uncertainty due to the general election, the loan charge remains in operation and people should continue to meet their legal obligations. This includes reporting the loan charge on tax returns by 31 January 2020, if applicable.
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