Tonight, an amendment on the Finance Bill put forward by Liberal Democrat MP Ed Davey has been passed unopposed in the House of Commons.
This amendment will force the Government to undertake a review into their proposed loan charge and its retrospective nature.
Responding to the victory, Ed Davey said:
"The Conservative Government’s concession this evening demonstrates how little support they had across the House on this issue. The loan charge is causing misery to thousands of struggling individuals across the country who were wrongly advised.
"To backdate these charges was grossly unfair and represented a disregard for the rule of law. Tonight, MPs have rightly come together to condemn this injustice.
"Hard working families across this country have been unfairly punished by these loan charges. I hope that these impact assessments will force the Government to rethink this cruel policy."
Full text of the amendment below:
“Review of changes made by sections 79 and 80
(1) The Chancellor of the Exchequer must review the effects of the changes made by sections 79 and 80 to TMA 1970, and lay a report on that review before the House of Commons not later than 30 March 2019.
(2) The review under this section must include a comparison of the time limit on proceedings for the recovery of lost tax that involves an offshore matter with other time limits on proceedings for the recovery of lost tax, including, but not limited to, those provided for by Schedules 11 and 12 to the Finance (No. 2) Act 2017.
(3) The review under this section must also consider the extent to which provisions equivalent to section 36A(7)(b) of TMA 1970 (relating to reasonable expectations) apply to the application of other time limits.”