The Loan Charge Action Group are pleased to announce that we are launching a Judicial Review to challenge the implementation of the 2019 Loan Charge.
The UK government introduced a new and immoral tax charge in the 2017 Finance (No. 2) Act 2017 that threatens to financially ruin tens of thousands of contractors, freelancers and other taxpayers. All sectors of UK industry are affected, from nurses and doctors to oil and gas workers, IT consultants and social workers. The legislation was slipped into schedules 11 & 12 of the Bill which was then passed by Parliament with very few MPs realising the dramatic and devastating change that these schedules would bring. 97 MPs have now signed an Early Day Motion (EDM 1239) supporting the campaign to remove the retrospective element of this pernicious tax law.
There is now an effective challenge to the 2019 Loan Charge and funding is required to win the case.
On the 16th of August 2018 the LCAG committee met with Robert Venables QC, one of the most respected leading tax counsel in the UK, who considered that a legal challenge to the implementation of the charge should be mounted, in order to kill off the loan charge and save tens of thousands from financial ruin and worse.
Robert Venables QC explained that while it is not possible to challenge the legislation under purely domestic law, there is a good prospect that the Courts would declare the legislation incompatible with the European Convention on Human Rights and further declare that it would be unlawful for HMRC to enforce the charges, including any associated interest or penalties.
As a result of that meeting LCAG have established a company called “Loan Charge Action Group FFC” which is acting as the trustee of a trust known as The Loan Charge Litigation Trust. It is intended that it will finance and control two applications for judicial review (one relating to each loan charge), with the services of Robert Venables QC engaged. The formal legal process is expected to start within a matter of weeks.
A judgement on the case is expected to be published towards the middle of 2019. In the event of a successful challenge by LCAG it is anticipated that HMRC will seek leave to appeal. In the unexpected event that HMRC win, LCAG will seek leave to appeal.
Funding is now urgently needed to support this challenge!
The Loan Charge Action Group FFC and the Loan Charge Litigation Trust have been created with the sole purpose of collecting funds for use in the legal challenge such as Court costs, QC representation, and solicitors’ fees.
We have received initial indication of costs which are set out below:
- High Court – £500,000
- Court of Appeal – £250,000
- Supreme Court – £250,000
Note all costs include VAT.
Funding can be made by a contribution to the Loan Charge Litigation Trust. When litigation is finally completed, surplus funds (including costs recovered from HMRC) will be returned to contributors in proportion to the contribution they have made. However, where a person has contributed less than £600, his refund will instead be made to charity.
For the avoidance of doubt, the amount a person receives back will depend upon how costs are awarded and will be net of any disbursement or costs incurred by the group. All contributors will become Beneficiaries of the Trust and as such have access to information provided by the Trustee at various stages of the process. For the avoidance of doubt, the advice referred to above will be generic in nature and will not include personal representations.
If, like us, you believe the government and HMRC have no legal or moral basis on which to apply the Loan Charge then now is your chance to take some positive and meaningful action.
This is a call to action and potentially one of the most important decisions you are likely to make. We strongly urge you not to be complacent and leave it to ‘the others’ but to seize the opportunity and play a role in legally challenging HMRC. The reality is that for this legal challenge to be viable we will need everyone to contribute financially, otherwise the opportunity to right this awful wrong will be lost forever.
So please dig deep, this action cannot proceed without you.
How do I contribute?
Please be aware, that joining LCAG as a full member (£100 donation) and the LCAG FFC Judicial Review are entirely separate. Donations to LCAG go towards our primary lobbying campaign, whereas joining the JR goes towards fighting the LC itself.
To make a contribution please visit our FUNDING PAGE. Before contributing, please make sure you take the time to read the overview, FAQ and timeline. If there any further questions, please email firstname.lastname@example.org
Become a Member of LCAG
The Loan Charge Action Group has been formed to raise awareness of the retrospective tax charge introduced by HM Government in the 2017 Budget.
Please note, we do not provide any form of chargeable service or professional advice.
Our mission is to:
Inform the tens of thousands of individuals impacted, most of whom are as yet unaware of its existence and devastating impact.
Build a community where affected individuals can find information and support.
Engage with politicians and the media to raise awareness of the devastating impact this legislation will have on individuals their families and our communities.Join Us Today