New loan charge regulations
Regulations setting out details of the new loan charge settlement opportunity have now been laid before Parliament.
The Employment and Trading Income etc. (Loan Charge Settlement Scheme) Regulations 2026 were laid before Parliament on 15 July 2026. They set out the detailed rules for the new settlement opportunity.
They are available on the Parliament website, together with the Explanatory Memorandum. The enabling primary legislation, which establishes the settlement opportunity in outline, is contained in the Finance Act 2026.
The regulations are due to come into force on 5 August 2026. This is the usual process for a negative statutory instrument. Parliament can still scrutinise the regulations after that date, including when it returns from the summer recess.
In theory, any MP could seek to annul the regulations during the scrutiny period. However, Parliament has already debated and approved the primary legislation which created the new settlement opportunity. These regulations mainly explain how the scheme will work in practice.
What’s next?
Regulation 17 of the new regulations allows HMRC to start issuing settlement offers under the new terms before the regulations formally come into force.
If you receive a settlement offer, read it carefully and follow HMRC's instructions. Our understanding is that even if HMRC's offer is £0 — meaning there is nothing to pay — you will still need to formally accept the offer and complete any required paperwork.
We will now review the regulations carefully and, where appropriate, publish further guidance to explain what they mean for taxpayers and settlement calculations. In the meantime, our existing loan charge guidance, including our step-by-step example of how the settlement opportunity works in outline, remains available.
