In this episode of The Tax Hour, our host Nick Wright welcomes Ray McCann, Consultant, former President of CIOT and former Assistant Director of HMRC, to discuss the recent Independent Loan Charge Review 2025.

00:00 Introduction

00:35 What Is the Loan Charge?

09:25 How Loan Schemes Worked

13:49 Why the Government Introduced It

19:26 Where the Loan Charge Went Wrong

23:08 The Human Cost & Financial Impact

28:39 Promoters, HMRC & Responsibility

36:03 Ray’s Recommendations

53:54 Final Verdict: Was This the Best Possible Outcome?

Join Nick Wright and Emma Chamberlain for an expert discussion on wealth taxes in the UK. Emma, a barrister and visiting professor at Oxford and the LSE, was a commissioner for the 2020 Wealth Tax Commission.

This episode explores why the Commission ultimately recommended against annual wealth taxes, the challenges of implementing a one-off wealth tax, and how the UK's approach to taxing capital compares internationally. They discuss the need for comprehensive reform of capital taxes (CGT, IHT, council tax) rather than piecemeal changes, and why political consensus is essential for sustainable tax policy.

Key insights include:

Key topics include:

-Intro

-Origins of the Wealth Tax Commission

-Historical Attempts and Lessons Learned Exploring Denis Healey’s 1970s wealth tax plans and why early efforts failed.

-The Covid Context and Public Perception

-Defining a Wealth Tax

-Annual vs One-Off Wealth Taxes

-Broader Tax Reform & Capital Taxes Discussion

-The Need for Systemic Reform Challenges

-Fairness and Tax Equity

-Public Perception, Avoidance & Final Reflections

Essential listening for understanding current debates about wealth taxation and capital tax reform in the UK.

🔗 Resources mentioned:

Wealth Tax Commission website: https://www.ukwealth.tax/

Upcoming LSE event with Emma Chamberlain: 1st December: https://www.pumptax.com/events/emma-chamberlain-speaking-at-lse-on-the-wealth-tax-commission-5-years-on/

How can SMEs stay ahead?

Warren Mead, CEO of Sumer, shares insights and strategic foresight on 'The Tax Hour'.

Join Nick Wright, Head of Corporate Tax, and Warren Mead, CEO of Sumer, for an insightful conversation on:

• How SMEs can accelerate growth and build resilience in today’s economic climate

• Why having the right tax strategy and advice is critical for long-term success

If you have any questions or need further information, please get in touch. At Jerroms Miller Specialist Tax we offer a wide range of specialist tax advice for all business tax scenarios.