The Exchequer Secretary to the Treasury, James Murray, has announced an independent review of the loan charge to bring matters to a close for taxpayers affected by the legislation. What will the terms of the review be? When can we expect an outcome? What should affected taxpayers do now?
This is a freeview article.
The first review
- An independent review of the loan charge was first carried out in 2019 by Lord Morse.
- Due to controversy around the review and the loan charge being linked to 10 suicides, MPs and campaigners pushed for a further review to be undertaken.
The new review
- Was launched on 23 January 2025.
- Will be undertaken by Ray McCann, former president of The Chartered Institute of Tax (CIOT).
The review will consider both the loan charge liability and the underlying tax liabilities arising from the use of Disguised Remuneration (DR) schemes. The review will only be specific to DR schemes affected by the loan charge and will not take into consideration DR schemes that fall outside the scope of the loan charge.
DR schemes that fall within the date range of 9 December 2010 and 5 April 2019 will be classed as within the scope of the review.
The objectives of the new review have been outlined as follows:
- Bring matters to a close for affected taxpayers.
- Ensuring fairness for those affected.
- Ensuring support is in place for taxpayers affected by the Loan Charge.
Mr McCann is expected to work with officials who have not previously worked on this policy. HMRC are expected to support Mr McCann by providing any information requested by him to assist him in his review. The review will be submitted to HMRC before publication.
If you are affected
- You can request a 'pause' on the settlement until the loan charge review has concluded. HMRC are under no obligation to grant a pause.
- Speak to your local MP for support in corresponding with HMRC and to voice concerns over HMRC's handling of your case.
- Contact our Virtual Tax Partner for assistance.
The review is expected to be concluded and published in a report submitted to the Exchequer Secretary of the Treasury by the summer of 2025.
Useful guides on this topic
Loan charge and disguised remuneration
When do the disguised remuneration rules apply? How do they apply? When does the loan charge apply? What options for settlement are available?
Disguised remuneration loan charge
What is disguised remuneration? What is the loan charge? When does the loan charge apply? Will the loan charge affect me?
Disguised remuneration 2020 settlement opportunity
What is HMRC's position on disguised remuneration loans where settlement was not reached by 30 September 2020? Can a settlement still be reached?
FAQs for disguised remuneration settlements
Can I just repay my loans? What if I have paid the loan charge, can I still settle? How much will it cost to settle? And many other FAQs.
