MPs seek more information about investigations into 10 suicides linked to the loan charge

The letter, which has been signed by the APPG’s co-chairs Sammy Wilson MP, Greg Smith MP and Baroness Kramer, states: “We are specifically seeking information regarding the process for investigating suicides of people facing HMRC demands and action, following our letter to the Independent Office of Police Conduct.

“As you are aware, you confirmed in a letter to the chair of the Treasury Select Committee dated January 6 2023 that there had been 10 suicides related to the loan charge and that these had been referred to the IOPC. Previously the impression has been given (or has been taken) that because HMRC has referred the 10 suicides to the IOPC, that the IOPC would have investigated these. It is now confirmed that this is not the case and that the IOPC has not investigated any of the 10 suicides. The IOPC confirmed to us that of the 10 referrals, they returned seven to HMRC to deal with as they felt was appropriate and that they mandated a local investigation in three of them. They have informed us that they carried out three reviews following the three HMRC internal investigations and in one case identified learning for HMRC.”

The letter to Mr Harra states that a “key question” is whether spouses, partners and other close family members of the victims and the professional advisers representing these clients have been involved in the investigations.

The letter added: "It is our view that any investigation that did not do so, is not a proper investigation into the circumstances of these tragic deaths, related to this very controversial legislation, proposed and enforced by HMRC.

"As you know, we asked the IOPC if they had contacted any of the families or advisers as part of their process and they confirmed that they did not do so. They did not know if HMRC have included this as part of the internal investigations. We therefore wish to know if HMRC did so.”

According to the letter, the APPG has had direct contact from families of three people who died by suicide.

"In two cases that we are aware of, the loan charge was mentioned in suicide notes,’’ the letter states: “We have also had testimonies from advisers of two of the victims, in each case their adviser was clear that the pressure from HMRC, as a result of the loan charge, was the reason the individual took the decision to end his life. To ignore this link, therefore, as we fear has happened, would render investigations of little use. We therefore wish to know if HMRC have considered this clear link as part of their local investigations. We are also very concerned, from evidence sent to us, that HMRC fails in some cases to follow its own procedures and processes regarding people it has itself classed as vulnerable.” A spokesman said HMRC had received the APPG’s letter and is giving it the appropriate consideration.

Significant changes were made to the loan charge following Lord Morse's independent review in 2019 which reduced its impact, HMRC has said previously.

“HMRC takes the wellbeing of all taxpayers very seriously and recognises that large tax liabilities can add significant pressures for some people. Taxpayers are supported by HMRC’s trained advisers who, where appropriate, also encourage them to contact organisations such as Samaritans or Mind for specialised help.”

“We never forget that there’s a human story behind every unpaid tax bill. No-one is more aware of that than our settlement teams, who have supported more than 20,000 customers to settle their use of disguised remuneration schemes. This has secured more than £3bn for the UK’s essential public services.”