Election Delays Loan Charge Review
Sajid Javid, the Chancellor of the Exchequer, has appointed the former head of the National Audit Office, Sir Amyas Morse, to head an independent commission-led review of the Disguised Remuneration Loan Charge scheme.
The role of the review is to evaluate the impact of the scheme on individuals who have engaged in disguised remuneration schemes. This comes after the HMRC scheme was paused, pending a review, after Parliamentary working groups highlighted the real human cost of the scheme with a spate of suicides and increased mental health problems.
According to HMRC:
“As Parliament has voted for a General Election on the 12th December, and in line with Cabinet Office guidance about what decisions can be made in the pre-election period, Sir Amyas will deliver his report to the new Government on its formation. The Government will consider his report and respond in due course. While the review is underway the Loan Charge will remain in operation, in line with current legislation. HMRC will update their guidance setting out details of what the next steps are for you if your potential liability to the Loan Charge changes as a result of the Government response to the Review.”
HMRC also stated that they have received a great deal of information from stakeholders involved both directly and indirectly with the Loan Charge scheme.
The “Delay” Won’t Help MPs on The Doorstep During The Election
The ‘delay’ was announced by Jesse Norman, the Financial Secretary to the Treasury who informed Sir Amyas Morse, the chair of the review, that the delay would be due to the General Election, stating:
“Jesse Norman, financial secretary to the Treasury, has informed Sir Amyas Morse, chair of the independent review into the controversial loan charge rules, that the mid-November deadline, originally set out by the Chancellor Sajid Javid, can no longer observed as parliament has dissolved.
A new government is due to be in place in mid-December after the 12 December election.
In a letter to Morse, Norman said: ‘In light of this, and the clear Cabinet Office guidance about what decisions can be made in a pre-election period, ministers have agreed that it would be most appropriate for your report to be submitted to the new government on its formation.”
Worried About The Loan Charge?
Why not get in contact with Prestige Business Management today? Why not call us on 0203 773 2927 to discuss any disguised remuneration schemes and how we could help you with any loan charge-related issues?