After extensive lobbying by affected taxpayers, MPs and other interested parties the Government last week finally announced a fresh review of the controversial loan charge. Whilst this is welcome, a healthy portion of scepticism is required as the make-up of the review team is drawn exclusively from HMRC and Treasury officials. So unless a turkey really will vote for Christmas this time it is difficult to see how a truly independent review can take place. On the plus side, evidence is currently being gathered from a number of well-respected tax professionals, most notably the award winning tax barrister Keith Gordon, and the hope is therefore that the leader of the review, Sir Amyas Morse, will take on board what they have to say.
The review will be conducted quickly, with evidence to be submitted before 30 September with a view to completing the review in mid November. Whilst a short timescale is to be welcomed, this must not come at the cost of dealing with the plethora of issues surrounding this particularly pernicious legislation.
Whilst the review is being conducted, HMRC have agreed to pause any existing settlement discussions and we are recommending to all of our clients who have not yet settled to delay doing so until further notice.
If you have been affected by the loan charge and wish to have a free, no obligation discussion about your circumstances please do not hesitate to contact Richard Coombs (richardc@batesweston.co.uk) or Craig Simpson (craigs@batesweston.co.uk)