FEARS THAT LED TO INTRODUCTION
The loan charge was introduced in 2016.
It was implemented in response to the Treasury’s concerns about disguised remuneration schemes which involved individuals being paid through loans, usually via an offshore trust in a low or no tax jurisdiction, which they did not have to repay.
According to the Treasury, the loan charge means people paying themselves through loans will have to contribute their “fair share” to pay for our public services. It has resulted tax bills, which in some cases date back to 1999.