Lucy Rigby
MP for Northampton North · Labour · United Kingdom
“The Prime Minister confirmed earlier today that we will bring the welfare bill down as soon as possible. I am very happy to confirm that. As the Chancellor said yesterday, when it comes to public services we will insist on reform, prioritisation and value for money.”
House of Commons29 October 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“We are reforming welfare, and the Prime Minister has made it clear today— [ Interruption. ] The welfare Budget ballooned under the Conservative party. The Prime Minister has been very clear today that the welfare bill will come down. As I have said, the contrast between our approach and the Conservatives’ could not be clearer.”
House of Commons29 October 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“I thank all right hon. and hon. Members for their contributions to this Budget debate. It is an honour to respond on behalf of the Government.”
House of Commons29 October 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“Friends the Members for Buckingham and Bletchley (Callum Anderson) and for Blaydon and Consett (Liz Twist), have rightly emphasised the importance of our commitment to fiscal responsibility, which underwrites every promise this Government make to the British people.”
House of Commons29 October 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“Member for Arundel and South Downs (Andrew Griffith), with not so much a pinch of salt, but a whole bucket of it, because not only is he the architect of the mini-Budget, but he maintained just a few weeks ago that the mini-Budget, as the Defence Secretary said, contained lots of good things.”
House of Commons29 October 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“I can. On that commitment to sound finances, our plan is to double down on the conditions that will allow for the growth that will drive this country’s future prosperity. We are determined that Britain will be an even better place to start a business, to scale it and then to stay.”
House of Commons29 October 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
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“The Government have published a tax information and impact note setting out the impact of the EMI expansion. That showed that the measure will cost £585 million in 2029-30. The expansion is expected to support an extra 1,800 of the highest growth scale-up companies over the next five years, allowing them to reward an estimated 70,000 more employees. The Government keep all taxes under review, and monitor and evaluate tax policy changes on an ongoing basis. We have also launched a call for evidence to gather views from founders, entrepreneurs, scaling companies and investors on tax policy support for investment in high-growth UK companies.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“Clause 13 significantly expands the enterprise management incentives scheme eligibility to allow greater access for scaling companies. Specifically, the changes made by the clause will expand the EMI company eligibility limits to maintain the world-leading nature of the scheme. Government amendments 37 and 38 are consequential to the business asset disposal relief legislation, updating it to align with the EMI maximum holding period expansion provided by the clause. The change will significantly expand the EMI limits and expand access for scale-up companies. New clause 24 would require reports to the House of Commons on the impact of the clause on recruitment and retention in qualifying companies, on high-growth and innovative businesses and on the Exchequer finances.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“Amendment made: 38, in clause 13, page 7, line 38, for “(7)” substitute “(8)”.— (Lucy Rigby.) This amendment is consequential on the addition of a new subsection by Amendment 37. Clause 13, as amended, ordered to stand part of the Bill. Clause 14 Enterprise investment scheme: increase in amounts and asset requirements Question proposed, That the clause stand part of the Bill.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“I am pleased to tell him that the Government’s objectives on the growth of financial services very much align with that report. Our objectives and the report have much in common, but most importantly, we share the sense of urgency and ambition that it outlines. The hon. Member for Maidenhead referred to his desire to see more companies remain in the UK. That is imperative, and it is behind the Government’s reforms to a series of tax incentives in this area. We believe that the UK is already the best place in the world to start a company, and we have to make sure that it continues to be, but it must also be the best place to scale and to list a company. That is why the reforms are so important—so that companies stay. Amendment 37 agreed to.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“The hon. Member for North West Norfolk made a series of important points. I come back to the fact that the Government have opened a call for evidence on tax in this area. The Committee will come to the enterprise investment scheme and venture capital trusts scheme, which the call for evidence also covers. Importantly, the call for evidence covers the changes we have made to the enterprise management incentives scheme. All of those changes, as well as the clauses we are about to discuss, are important to the Government’s objective of making sure that the UK is the best place in the world to start and grow a business, and I encourage any views to be fed into that call for evidence. The hon. Member referred to an important report from TheCityUK and PwC; I attended its launch yesterday.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“Alongside that, as I said, the VCT up front income tax relief will decrease from 30% to 20% from April 2026. Government amendments 3 and 4 fix wording in clause 15 so that the annual and lifetime investment limits consistently apply to “the relevant company”, removing any ambiguity in how the VCT limits should be interpreted.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“Clauses 14 and 15 double the maximum amount that a company can raise through the enterprise investment scheme and venture capital trusts scheme, as well as the gross assets limit for companies using the scheme. The VCT income tax relief will also be reduced from 30% to 20%. The changes made by clause 14 will mean that, from April 2026, the EIS annual company investment limits will increase to £10 million, or £20 million for knowledge-intensive companies. The lifetime company investment limits will increase to £24 million, or £40 million for knowledge-intensive companies. The gross assets test will increase to £30 million before share issue, and £35 million after. Likewise, clause 15 will mean that from April 2026, the VCT company investment limits and gross assets test will increase to the same levels.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“Clause 15 Venture capital trusts: rate of relief and amounts and asset requirements Amendment proposed : 29, in clause 15, page 10, line 23, leave out subsection (2).— (James Wild.) This amendment would maintain the rate of income tax relief for investments into venture capital trusts at 30 per cent. Question put, That the amendment be made.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“The reduction in income tax relief therefore reflects the overall reduction in investment risk that comes with investing in later-stage companies. It is important to bear in mind that the VCT scheme remains very generous with, as I said, 100% tax relief on dividend payments and 100% capital gains tax relief on the sale of shares, alongside that 20% income tax relief. I know that the shadow Minister does not like TIINs in general—he has made that point in the Chamber—but they do contain the full details of the assumptions and impacts, and indeed the policy rationale. I therefore commend clauses 14 and 15 and Government amendments 3 and 4 to the Committee, and ask that amendment 29 and new clause 1 be rejected. Question put and agreed to. Clause 14 accordingly ordered to stand part of the Bill.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“I welcome the shadow Minister’s welcoming of the majority of the changes that we are making. To address his criticism of what we are doing in relation to the venture capital trust income tax relief, I come back to the impetus behind this package of reforms as a whole on EMI, EIS and VCT, which is to make sure that the UK is the best to start, scale, list a company and to ensure that companies stay. The specific change to VCT to reduce the income tax relief from 30% to 20% is to help rebalance the up-front tax reliefs offered across the schemes, where the VCT scheme offers tax relief on dividend income, which the EIS scheme investors do not get. VCTs tend to invest in larger, less risky, scaling companies compared with EIS scheme investors.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“The change will therefore support more employees of growing UK companies to access the tax advantages of EMIs, and ensures that the tax system keeps pace with innovation in the wider economy. It also, of course, supports the launch of PISCES, which will provide a key stepping stone for public markets, supporting our world-leading capital markets. I commend clause 16 to the Committee.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“Clause 16 will enable the existing enterprise management incentives scheme and company share option plan contracts agreed before 6 April 2028 to be amended to include a sale on the private intermittent securities and capital exchange system—known by its much more catchy acronym of PISCES—as an exercisable event, without losing the tax advantages. The legislation will have retrospective effect from 15 May 2025. In the interim, His Majesty’s Revenue and Customs will be able to use its collection and management powers to not collect tax on exercise. That means that this change will benefit PISCES trading events that happen before the Finance Bill receives Royal Assent.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“That is exactly why we have the April 2028 extension, to allow PISCES to become more embedded and therefore more standard in EMI and company share option plan contracts. As I said, I understand the impetus behind the suggested change; I just do not think it is necessary. Question put and agreed to . Clause 16 accordingly ordered to stand part of the Bill . Clause 17 Employee car and van ownership schemes Question proposed, That the clause stand part of the Bill.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“The Government delivered the regulatory framework for PISCES in May 2025, and the shadow Minister has, fairly, asked for an update. I am pleased to tell him that the Financial Conduct Authority has since approved, as he may know, two PISCES market operators: JP Jenkins and the London Stock Exchange. We are hopeful that the first trading events on PISCES will take place soon. I understand the impetus behind the shadow Minister’s other points. PISCES can, of course, be written into new contracts when they are agreed, meaning that those contracts should not need to be amended to include PISCES, because it can be there ab initio. However, it is fair to say that companies might not yet be aware of PISCES, as it was only recently introduced.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“The Government recognise that although it is right that higher-emitting vehicles pay more tax, lower-emission company cars such as plug-in hybrid vehicles continue to play an important role in supporting our transition towards zero emission vehicles and the decarbonisation of transport. The changes made by the clause will introduce a temporary benefit-in-kind tax easement for employers providing, and employees being provided with, PHEVs as company cars. I commend clauses 17 to 19 to the Committee.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“This measure will ensure fairness to other taxpayers, reduce distortions in the tax system and reinforce the emissions-based company car tax regime, which incentivises the take-up of zero emission vehicles. To support the automotive industry and provide employers with more time to adjust to the changes, the Government have delayed implementation of the measure to 6 April 2030 and have introduced transitional rules. On clause 19, new emissions standards being introduced in the UK reflect the higher real-world emissions of PHEVs. It is important that a car’s official emissions figures reflect real-world emissions, but that can lead to tax increases where tax is linked to emissions levels.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“Clauses 17 and 18 will bring employee car ownership schemes into the benefit-in-kind regime from 2030, with transitional arrangements until 2032. Clause 19 will ensure that the introduction of new emissions standards does not lead to a sharp increase in benefit-in-kind tax for plug-in hybrid electric vehicles. On clauses 17 and 18, the costing, published alongside the Budget, accounts for a behavioural response whereby a significant number of taxpayers switch towards alternative vehicles or move away from using company cars altogether. That has been updated since the 2024 autumn Budget, taking into account further evidence on the impacts of the measure provided by the sector. Private use of a company car is a valuable benefit, and it is right that the appropriate tax be paid on it.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“Various points have been made about the tax incentives, but underpinning all of them is our commitment to support the automotive industry in a challenging fiscal environment. We will publish in due course the guidance that the hon. Member for Maidenhead requests. Question put and agreed to. Clause 17 accordingly ordered to stand part of the Bill. Clauses 18 and 19 ordered to stand part of the Bill. Clause 20 Employment income: miscellaneous exemptions Question proposed, That the clause stand part of the Bill.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“On the points made by the shadow Minister, the hon. Member for Wyre Forest, we have listened very carefully indeed to the sector’s concerns and have responded. That is exactly why we are delaying the proposed changes to employee car ownership schemes until 2030. That is the reasoning behind the delay. The Government are firmly committed to our modern industrial strategy, and specifically to the automotive sector. That is why in the past year we have committed £2.5 billion to automotive investment and research and development, increased flexibilities in the ZEV mandate, funded the roll-out of more charge points and announced plans to cut electricity costs for energy-intensive manufacturers.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“It will also make a consequential amendment to foreign employment relief, commonly known as overseas workday relief, to ensure that this clarification also applies to UK residents who claim it. I commend clauses 20 to 23 to the Committee.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“These tax changes will have an impact only on a small subset of workers, as the vast majority of such payments are taxable under existing legislation. The measure confirms that payments received in the event that a shift is altered at short notice are taxable in all scenarios, including in relation to agency workers and workers employed under umbrella companies. Clause 23 puts beyond doubt the answer to whether earnings for duties not performed should be treated as UK earnings or overseas earnings for non-UK residents. The clause will establish a general principle to determine the tax treatment of earnings that relate to duties that have not been performed.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“The Exchequer impact is negligible, but this change will allow employers to support staff without having to handle the sourcing and provision of minor items themselves. This will reduce time and resource costs. Clause 21 relates to homeworking expenses. It will remove the process by which employees can claim an income tax deduction from HMRC if they have incurred additional household costs when required to work from home. The changes introduced by the clause aim to address concerns around non-compliance and to ensure fairness across the tax system. Clause 22 will introduce changes that confirm the income tax treatment of payments made by zero-hour or similar limited-hour workers for a cancelled, moved or curtailed shift. This measure will put the tax treatment of such a shift beyond doubt.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“Clauses 20 to 23 relate to other employment income. Clause 20 will simplify the rules on common workplace health and equipment costs, reducing administrative burdens for employers and giving greater clarity to the tax treatment of these costs. It will exempt reimbursements for accommodations, supplies or services used in performing employment duties, such as homeworking equipment; it will extend the existing exemptions for eye tests and corrective appliances to cover reimbursements; and it will introduce a new exemption for both the direct provision and the reimbursement of flu vaccinations. Uptake will depend on employer practice, but these changes will make the rules simpler and fairer for those affected.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“They are paid in lieu of the payment that workers would have received had they completed the shift, and as such they are taxable in all relevant scenarios, irrespective of the arrangement or the employment structure. Question put and agreed to. Clause 20 accordingly ordered to stand part of the Bill. Clauses 21 to 23 ordered to stand part of the Bill. Clause 24 Umbrella companies”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“It is important to be clear that clause 21 will not impact employers’ existing ability to reimburse employees for costs relating to home working, where eligible, without deducting income tax and national insurance contributions. The question of national insurance was raised in relation to clause 22 on payments for cancelled shifts. These payments will be subject to national insurance. My hon. Friend the Member for Burnley was entirely right to refer to the Employment Rights Act and its significance. I think I am right in saying that a question was also raised about the taxable nature of payments for cancelled shifts. I can confirm that payments received for short-notice shift cancellations or changes are regarded as earnings.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“The shadow Minister, the hon. Member for Wyre Forest, and my hon. Friend the Member for Burnley referred to vaccinations and asked about the extent to which covid vaccinations might be part of the scheme. We are limiting relief to flu vaccinations because employers have consistently highlighted them as a common relief in relation to which reimbursement would be helpful. Flu vaccinations are low in cost, seasonal and widely offered by employers as part of routine health support to employees. By contrast, other vaccinations vary significantly in cost and frequency. Importantly, however, many of them can be accessed free through the NHS. As you might expect, Sir Roger, I completely reject the shadow Minister’s assertion that any of these measures is an attack on private sector workers. Not at all—far from it.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“(5) In this section ‘CRCA 2005’ means the Commissioners for Revenue and Customs Act 2005.” This amendment permits disclosures (whether or not permitted as a result of provision elsewhere) to persons who may be jointly and severally liable as a result of new Chapter 11 of Part 2 of the Income Tax (Earnings and Pensions) Act 2003.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“(3) Information disclosed in reliance on subsection (2) may not be further disclosed without the consent of the Commissioners for His Majesty’s Revenue and Customs (which may be general or specific). (4) Where a person contravenes subsection (3) by disclosing information relating to a person whose identity— (a) is specified in the disclosure, or (b) can be deduced from it, section 19 of CRCA 2005 (offence of wrongful disclosure) applies in relation to the disclosure as it applies in relation to a disclosure in contravention of section 20(9) of that Act.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“(2) The officer may at any time disclose to the person such information as the officer considers appropriate (whether or not such a disclosure would otherwise be permitted under section 18(2)(a) of CRCA 2005 or any other enactment) for the purposes of informing the person about that liability (‘the joint liability’) including— (a) the identity of any person who is an umbrella company, a purported umbrella company or the worker in relation to the arrangements to which the joint liability relates, and (b) information about the nature and extent of the liability of an umbrella company or a purported umbrella company that (by virtue of this Chapter) results, or may result, in the joint liability.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“I beg to move amendment 5, in clause 24, page 28, line 25, at end insert— “61Z2 Disclosures to liable persons (1) Subsection (2) applies where an officer of Revenue and Customs considers that a person is, or may be, jointly and severally liable to pay an amount as a result of this Chapter.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“This will ensure that HMRC is able to recover underpayments of tax from businesses that are within scope of the new rules because they purport to be umbrella companies, in the same manner that underpayments will be recovered from the other businesses that are within scope of the new rules. Amendment 5 will ensure that HMRC is able to keep taxpayers informed about its investigations concerning sums to which they are jointly and severally liable. That will help taxpayers to take action to mitigate their exposure to unpaid liabilities. I commend clause 24, together with Government amendments 5 to 8, to the Committee.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“Clause 24 will make changes to ensure that recruitment agencies are responsible for accounting for pay-as-you-earn on payments made to workers that are supplied via umbrella companies. Many umbrella companies operate diligently and support their employees, but a significant number are used to facilitate non-compliance, including tax avoidance and fraud. Clause 24 is intended to encourage increased due diligence among businesses that choose to use umbrella companies to engage workers. It will do so by introducing joint and several liability for the PAYE taxes that umbrella companies are required to remit to HMRC. Government amendments 5 to 8 will ensure that the legislation works as intended by making a small technical change.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“Amendment 8, in clause 24, page 29, line 34, leave out from first “to” to “as” in line 35 and insert “that amount”.— (Lucy Rigby.) This amendment is consequential on Amendment 6. Clause 24, as amended, ordered to stand part of the Bill. Clause 25 Loan charge settlement scheme”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“Employment is a fundamental characteristic of how most umbrella company workers are engaged and is the key aspect in determining when this legislation will apply. I think that will be the key legal test. Amendment 5 agreed to. Amendments made: 6, in clause 24, page 29, line 31, leave out “a ‘relevant party’ for the purposes” and insert “jointly and severally liable to pay an amount as a result”. This amendment makes sure that HMRC can use their power to make determinations about PAYE income in relation to persons who are jointly and severally liable to amounts of PAYE income under new section 61Z1 of the Income Tax (Earnings and Pensions) Act 2003. Amendment 7, in clause 24, page 29, line 32, leave out from “ITEPA” to end of line 33 and insert “(umbrella companies)—”. This amendment is consequential on Amendment 6.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“We think it—and it sounds like the shadow Minister agrees—that that has contributed to the proliferation of non-compliance in the umbrella company market. It is important that agencies take steps to ensure that their labour supply chains are compliant, and some agencies already do. HMRC has published guidance on how to undertake checks. The shadow Minister asked about which agencies may be treated as umbrella companies, given the breadth, or otherwise, of the definition. We are, of course, aware that some agencies engage workers as employees, and where that is the case, and they meet the other conditions of the legislation, they will be treated in the same way as umbrella companies and this measure will apply.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“On the shadow Minister’s final question, I am afraid that I do not know what discussions have taken place with the organisation he referred to, but I can write to him and let him know. Ultimately, whether to use an umbrella company when supplying a worker to a client is a commercial decision for agencies. That commercial decision has been incentivised not just by the ability to outsource administration to umbrella companies, but by the shielding from exposure to tax risk that that model provides. It is good to hear the shadow Minister welcome the impetus behind the changes in that regard. The current legal framework provides few incentives for agencies to ensure that the umbrella companies they use are compliant.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“I beg to move amendment 9, in clause 25, page 30, line 21, at end insert “, or (ii) a director or shadow director of such a person.” This amendment expands the persons to whom the Commissioners are not required to make a loan charge settlement offer so as to include directors and shadow directors of a promoter or introducer.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“I am sure that everyone will be aware that the loan charge is already subject to significant parliamentary scrutiny. HMRC officials and Treasury Ministers routinely provide updates on their work to the Treasury Committee and the Public Accounts Committee, and the Treasury Committee asked the HMRC permanent secretary about this topic just last month. I therefore urge the hon. Member for Maidenhead not to move his new clauses, and commend clauses 25 to 27, and Government amendments 9 to 11, to the Committee.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“The Government published a comprehensive response to the review, setting out our position, at the Budget. That outlined the decisions the Government made to help draw this matter to a close for those impacted, and explained why the scope of the review had been set as it had. It explained that the settlement opportunity will apply to disguised remuneration use between December 2010 and April 2019, because that is the period to which the loan charge applies. While people who used tax avoidance schemes outside that period will not be able to access the scheme, HMRC will work sensitively and pragmatically to help people to resolve their cases, including by taking account of people’s means and offering generous payment terms where appropriate.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“Clause 25 makes provision for the exclusion of tax avoidance promoters from the settlement opportunity. Amendments 9 and 10 tighten those provisions to ensure that HMRC is able to prevent the controlling minds behind promoter companies from inappropriately accessing the settlement opportunity, in line with the Government’s announcements at the Budget. Amendments 9 to 11 also clarify that where an employer still exists, it can enter into a settlement on behalf of its employees who used disguised remuneration schemes. New clauses 25 and 26, which would require HMRC to publish a report on the operation and scope of the loan charge settlement opportunity and a report on the treatment of disguised remuneration arrangements falling outside the scope of the loan charge, are unnecessary.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“In addition to removing late payment interest and inheritance tax, and allowing for generous tax deductions to represent amounts assumed to have been paid to promoters, the Government will also write off the first £5,000 of each individual’s liability. Because of these changes, around 30% of people within scope of the review could see their liabilities removed entirely, while most other individuals will see their liabilities reduced by at least half. Turning to Government amendments 9 to 11, HMRC is aware of a number of promoters who have made use of their own disguised remuneration schemes and would be within scope of the settlement opportunity. I am very clear that it would be wrong for those individuals to be able to access the generous settlement terms on offer rather than paying every penny that they owe.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“Clauses 25 to 27 provide for the Government to create a settlement opportunity in line with their response to the independent review of the loan charge, and to encourage those who have not yet settled with HMRC to come forward and do so. Clause 25 sets out some of the main features of the scheme, including how the new settlement amount will be calculated. Clause 26 will ensure that inheritance tax is not charged as part of any settlement where it relates to disguised remuneration arrangements in scope of the loan charge. Clause 27 makes supplementary provision for the settlement scheme to ensure that it can operate as intended. In some places, the Government have gone further than the review recommended.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“The settlement opportunity being provided is substantially more generous than any opportunity HMRC has previously offered and will substantially reduce the outstanding liabilities of people who have yet to settle with HMRC, particularly those with the lowest liabilities. Most individuals, as I said, could see reductions of at least 50% in their outstanding loan charge liabilities. We estimate that 30% of individuals could have their liabilities written off entirely.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“The purpose of the review, as I think is well known, was to bring the matter to a close for those who had not yet settled and paid their loan charge liability to HMRC. That by its very nature meant focusing on open cases and outstanding liabilities. The Liberal Democrat spokesman, the hon. Member for Maidenhead, referred to something like this happening again. I think we would all agree that we hope it does not. However, we would probably also agree that it is crucial that any resolution to this issue is fair to the wider tax-paying population that has never avoided tax. The Government believe that this settlement opportunity is the most pragmatic solution to draw a line under the issue for as many individuals with outstanding liabilities as possible.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“Clause 27 Loan charge settlement scheme: supplementary Amendment made: 11, in clause 27, page 33, line 15, at end insert— “(da) adapting provision made under section 25(6), in cases where a settlement offer is made to a person who is not an individual, about the calculation of settlement amounts (including provision for the calculation to be different to what is required by section 25(6));”.— (Lucy Rigby.) This amendment clarifies that the loan charge settlement scheme can provide for the calculation of the settlement amount to be adapted where a settlement offer is made to a person who is not an individual. Clause 27, as amended, ordered to stand part of the Bill.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“Amendment made: 10, in clause 25, page 32, line 12, at end insert— “‘shadow director’ has the meaning given by section 251 of the Companies Act 2006.”— (Lucy Rigby.) This amendment inserts a definition for the purpose of Amendment 9. Clause 25, as amended, ordered to stand part of the Bill. Clause 26 ordered to stand part of the Bill.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“I managed to give way just before the end of my speech. The shadow Minister raises a good question and a fair point. Through the new measures and existing rules, HMRC will have powers that can result in criminal prosecution of promoters of tax avoidance, including the new universal stop regulation proposal, which will ban the promotion of the most fanciful schemes outright and allow the HMRC commissioners to ban by regulation the promotion of other arrangements that HMRC thinks will not work. We will consult on further measures to target promoters in early 2026—indeed, it is 2026 already, so the shadow Minister may assume that that will happen soon. Amendment 9 agreed to.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“Although the fiscal climate limits what we can do now, the new first-year allowance moves us closer to that goal in a responsible way. New clause 2 seeks to mandate reporting the impacts of clause 28 to the House. The Government have published documents much loved by the shadow Minister, the hon. Member for North West Norfolk—tax information and impact notes—setting out the impact of the reduction to main rate writing-down allowances, alongside the introduction of the new 40% first-year allowance. I therefore reject new clause 2 and commend clauses 28 and 29 to the Committee.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“Clause 29 will introduce the new 40% first-year allowance, which will support future investment. The new allowance is available for expenditure on plant and machinery, including assets bought for leasing and assets bought by unincorporated businesses, from 1 January 2026. The changes made by clauses 28 and 29 will raise approximately £1.5 billion per year by the end of the scorecard. The changes are UK-wide and will impact businesses with pools of historic main rate expenditure, which predate the introduction of the super-deduction or full expensing regimes for companies, as well as historic expenditure or future main rate expenditure that does not qualify for first-year allowances, or where first-year allowances were not claimed. We have heard the calls to expand full expensing to more assets and businesses.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗
“Clause 28 will reduce the main rate writing-down allowance for corporation tax and income tax, and clause 29 introduces a new first-year allowance available for expenditure on plant and machinery. As I am sure all hon. Members are aware, capital allowances allow businesses to write off the costs of capital assets, such as plant or machinery, against their taxable income. The UK continues to offer one of the most generous capital allowances systems globally and ranks top among OECD countries for plant and machinery capital allowances. Clause 28 will reduce the main rate writing-down allowance from 18% to 14%, starting on 1 April 2026 for corporation tax and 6 April 2026 for income tax. That allows the Government to fund a new first-year allowance while also fairly raising revenue to protect the public finances.”
House of Commons27 January 2026Contains Parliamentary information licensed under the Open Parliament Licence v3.0Source ↗