Tax Avoidance:Written question - 161576

Q
(Greenwich and Woolwich)
Asked on: 06 July 2018
Treasury
Tax Avoidance
Commons
To ask the Chancellor of the Exchequer, what estimate he has made of the total amount that will accrue to the public purse from the Loan Charge 2019.
A
Answered by: Mel Stride
Answered on: 17 July 2018

The charge on disguised remuneration (DR) loans is estimated to raise £3.2 billion for the Exchequer by 2021. Further information can be found in the ‘Disguised remuneration: further update’ policy paper, published on 22 November 2017: www.gov.uk/government/publications/disguised-remuneration-further-update/disguised-remuneration-further-update.

The charge on DR loans is estimated to affect up to 50,000 individuals. Outstanding DR loans will be treated as UK income and charged to tax on 5 April 2019. An individual will usually have to pay tax on UK income even if they are not resident in or a citizen of the UK, and the charge on DR loans is no different. As a result, no assessment has been made of how many of the 50,000 estimated to be affected are non-UK resident or non-UK citizens.

Grouped Questions: 161577

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