HM Revenue & Customs

Morse to lead review of the 'loan charge'

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The Treasury has announced that Sir Amyas Morse will review the "loan charge" .

Sajid Javid's department says the loan charge was introduced to tackle "contrived schemes" where a person’s income is paid as a loan which does not have to be repaid.

But it has sparked huge controversy - for example, read this BBC story.

The review will conclude by mid-November, the Treasury says, and look at whether the policy is an appropriate way of dealing with disguised remuneration loan schemes used by individuals who entered into these schemes

Financial Secretary to the Treasury Jesse Norman said: “Everyone should pay their fair share of tax. These disguised remuneration schemes are highly contrived attempts to avoid tax, but it is right to consider if the loan charge is the appropriate way of tackling them.

“The government fully appreciates the concerns expressed by individuals, campaigners, and MPs who have raised concerns about the loan charge".

HMRC had previously estimated around 50,000 people were in the schemes, which it has described since 2010 as "disguised remuneration".