Stone calls for immediate suspension of Loan Charge
Jamie has written to the Chancellor of the Exchequer asking him to commit to an immediate pause of the Loan Charge until the Loan Charge Review has concluded and the Government has implemented its recommendations.
The loan charge came into effect on 6 April and applies to everyone who used so-called disguised renumeration schemes. The legislation added a 45% non-refundable charge on all loans advanced through the schemes.
An independent review has been commissioned but the Chancellor has not suspended the charge while this review is taking place.
Commenting Mr Stone said:
“The Loan Charge is a retrospective change which has been imposed on individuals for their use of schemes which were legal at the time and in many cases were approved by tax advisors.
“The impact is substantial for many of the affected individuals and, as I have previously said in the House of Commons, perfectly innocent people have been caught in a terrible trap and there have already been several suicides as a result.
“The Treasury must suspend the 2019 Loan Charge immediately and agree to an independent review to ensure individuals and families are spared the devastating impact of the loan charge.”