UK Prime Minister Theresa May has entered the debate about Loan Charge 2019 after an amendment calling for its review was successful.
Sir Ed Davey tabled the amendment, and the Government has now accepted the review. May did not accept Davey’s offer of a meeting to discuss the situation, but she did say that Chancellor Philip Hammond would meet him to “look at how the review is being taken forward.”
The Treasury will conduct the review and look at the retrospective nature of the law that “offends against the rule of law.”
Davey said: “The review that’s now been established must respond to the concerns of MPs across the House. Treasury Ministers have a duty to respond seriously and substantively.”
Treasury Minister Mel Stride MP was the only MP that supported the charge.
Phil Manley, Partner at DSW Tax Resolutions and a former HMRC official, said: “It was an appalling and utterly ungracious response from Mr Stride. He conceded to having a review but then tried to pre-empt its conclusion, parroting the same misleading information the Treasury have been peddling for months.”
The House of Lords Economic Affairs Committee and more than 110 MPs have called for the amendment of Loan Charge 2019.
A Loan Charge Action Group survey found that among the people affected by the charge, seven out of ten face bankruptcy; one-third have suffered breakdowns in relationships; half have lost their homes and four out of ten have considered committing suicide.