HM Treasury  

Govt to overhaul tax charge after damning review

The government did not accept the recommendation in the review to introduce a write-off of tax due on the loan charge after 10 years for individuals whose time to pay arrangement is longer than 10 years, however.

According to the Treasury this would give loan charge users more favourable terms than taxpayers with other debts, including tax credit claimants.

Sir Amyas said: “The design and delivery of the loan charge didn’t get the balance right between tackling tax avoidance and protecting the rights of taxpayers and, in some cases, has caused serious distress to the individuals affected.

“I’m pleased to see the government commit to act on the recommendations of my Review, bringing the Loan Charge back into line with the wider tax system, better protecting those who are least able to repay and providing certainty for all those affected.”

imogen.tew@ft.com

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