Commons Sense

House of Commons · Ministers' Questions

Covid-19: 2019 Loan Charge

Monday 18 May 2020 · 2 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 2 Partly answered 0 Not answered 0

Key points

  • Taxpayers with loan charge liabilities can defer submission of their tax return until 30 September this year
  • HMRC continues to support taxpayers managing disguised remuneration liabilities during the coronavirus situation
  • The Treasury published its estimate at the time of the original tax information release regarding the 3.2 billion forecasted

Topics (select to filter)

Questions & Answers

Q1 David Davis Con Haltemprice and Howden
Taxation
Context

The question concerns the possibility of suspending or deferring the implementation of the 2019 loan charge during the ongoing pandemic.

Question

What assessment has been made regarding the potential merits of suspending the 2019 loan charge during the current covid-19 outbreak?

Answer from Jesse Norman (Financial Secretary to HM Treasury)

Taxpayers with loan charge liabilities can defer submission of their tax return until 30 September this year. HMRC has always worked hard to support taxpayers needing help managing disguised remuneration liabilities, and this continues during the coronavirus situation.

Answered
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Q2 David Davis Con Haltemprice and Howden
Economy Taxation
Context

The question delves into the estimated revenue that can be expected from the loan charge policy amidst an economic downturn.

Question

Considering we will face a recession in September, given the hundreds of billions committed by Treasury to support business recovery, what does the Minister estimate he will now raise from the £3.2 billion originally forecasted?

Answer from Jesse Norman (Financial Secretary to HM Treasury)

The Treasury published its estimate at the time of the original tax information release. While acknowledging the passion behind the issue, it is important to note that 99.8% of taxpayers do not engage in disguised remuneration schemes and supporting people's jobs and livelihoods does not justify letting off tax owed.

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