Edinburgh West MP, Christine Jardine, has written to the Chancellor of the Exchequer to ask him to commit to an immediate pause of the 2019 Loan Charge and to carry out a full review.
The loan charge came into effect in April and applies to everyone who used so-called disguised renumeration schemes. The legislation added a 45% non-refundable charge on all loans advanced through the schemes.
More than 100 people have been affected by the charge in Edinburgh West.
Ms Jardine said:
“The Loan Charge is a retrospective tax which has been imposed on individuals for their use of schemes which were perfectly legal at the time, and in many cases were approved by tax advisors.
“More than 100 people in Edinburgh West have been affected, and many of them have spoken to me about the financial stress they are now facing as a result.
“The parliamentary group looking into this has found evidence of multiple suicides of people facing the charge, and in light of this evidence, I’m becoming increasingly concerned about the wellbeing of my constituents.
“The Treasury must suspend the 2019 Loan Charge immediately and agree to an independent review to ensure that more individuals and families are spared the devastating impact of the loan charge.”