Loans repaid would not have been caught by the loan charge

Mr Clamp was an employee of UFJ from 2003 to 2005. In February 2005 UFJ created a settlement the UFJ Trust. The trustee provided various sums which could be drawn down at  Mr Clamp’s request. A letter from the trustee dated 16 September 2010 recorded £1.65m outstanding under the loan agreement from June 2005 and £235 000 from a loan agreement from August 2009.

In 2016 the loan charge was introduced and to avoid it Mr Clamp repaid the outstanding amounts - £1.885m - taking out a mortgage and selling investments to raise the funds. As a result of the loan charge review the legislation was however amended to apply only to loans taken out after 9 December 2010. As the taxpayer had taken out his loans between 2005 and 2009 he would not have been subject to the charge had the legislation...