MPs warn Prime Minister Rishi Sunak of 'strong likelihood' of more suicides due to loan charge

More than 150 Parliamentarians have signed an open letter to the Prime Minister and Chancellor calling for a fair resolution to ‘the loan charge scandal” which has been linked with a number of suicides.
By Greg Wright
Published 10th Mar 2023, 14:14 BST
Updated 10th Mar 2023, 14:16 BST

The Loan Charge & Taxpayer Fairness All Party Parliamentary Group’s (APPG) letter warns that if the Government does not instruct HMRC to change course, “we are fearful of what the consequences will be as thousands of people simply cannot pay the huge sums being demanded”. Earlier this year, it was confirmed by HMRC that it had made 10 referrals to the IOPC (Independent Office for Police Conduct) where a taxpayer had taken their life and had used a “disguised remuneration” scheme. Eight investigations have concluded and there was no evidence of misconduct by any HMRC officer, according to a letter sent by Jim Harra, Chief Executive and First Permanent Secretary of HMRC, to the chair of the Treasury Select Committee. Two investigations are ongoing, the letter said.

The MPs’ letter refers to the survey conducted by the APPG in 2021, which concluded there was a risk of more suicides. As well as the open letter, an Early Day Motion, has also been tabled by MPs calling for a resolution and an investigation into the loan charge. The EDM has been tabled by Karl Turner MP , who is a member of the APPG and supported by Sammy Wilson MP and other APPG members. The open letter and the EDM are both calling on the Government to change course, in light of the 10 suicides and to instruct HMRC to introduce a settlement opportunity, “one that reflects that people were recommended to use their arrangements, were reassured that they were compliant with tax law, and that HMRC failed to act at the time”.

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Greg Smith MP, Co-Chair of the APPG (Conservative), said : “The current approach of HMRC is not only unfair it is also dangerous. Ten suicides is ten too many and to simply continue in light of these tragedies is completely wrong. Without a change in approach, there will be bankruptcies, people losing homes and alas, a strong likelihood of even more suicides.”

Greg Smith MP, Co-Chair of the Loan Charge and Taxpayer Fairness APPG (Conservative), said : “The current approach of HMRC is not only unfair it is also dangerous. Ten suicides is ten too many and to simply continue in light of these tragedies is completely wrong.Greg Smith MP, Co-Chair of the Loan Charge and Taxpayer Fairness APPG (Conservative), said : “The current approach of HMRC is not only unfair it is also dangerous. Ten suicides is ten too many and to simply continue in light of these tragedies is completely wrong.
Greg Smith MP, Co-Chair of the Loan Charge and Taxpayer Fairness APPG (Conservative), said : “The current approach of HMRC is not only unfair it is also dangerous. Ten suicides is ten too many and to simply continue in light of these tragedies is completely wrong.

Baroness Susan Kramer, who is also a Co-Chair of the APPG (Liberal Democrat), said: “The Treasury and HMRC are well aware there remains a serious suicide risk and to ignore this and to continue with the current approach is negligent, as well as immoral. We urge the Prime Minister to listen and act before any more lives are lost”.

A Government spokesperson said: “The Loan Charge targeted tax avoidance schemes that sought to avoid income tax and National Insurance contributions by paying earnings in the form of loans. Significant changes were made to the Loan Charge following Lord Morse's independent review in 2019 which reduced its impact.

“HMRC takes the wellbeing of all taxpayers very seriously and recognises that large tax liabilities can add significant pressures for some people. Taxpayers are supported by HMRC’s trained advisers who, where appropriate, also encourage them to contact organisations such as Samaritans or Mind for specialised help.”

Related topics:HMRCRishi SunakKarl TurnerPrime MinisterMPs