An action group is calling on newly appointed Treasury ministers to release thousands of families from the “never-ending nightmare” caused by the loan charge, a controversial tax policy which has been linked with a number of suicides.

The Loan Charge Action Group (LCAG) has written to the two key Treasury Ministers who will have responsibility for the loan charge in the reshuffled Government under new Prime Minister Liz Truss.

The letters from LCAG urges both Ministers to “stick to their convictions” and agree to review and resolve the loan charge and work with campaigners and sector professionals to do so. The loan charge was designed to tackle tax avoidance schemes where individuals receive income in the form of loans that are not repaid to avoid income tax. Critics believe the loan charge is a flawed and punitive policy. Opponents of the loan charge have included the Rev Richard Coles, the broadcaster and retired priest, who called on the Tory party leadership contenders to find a resolution to the loan charge as an urgent priority “before more families are destroyed”.

Thousands of families face 'never ending nightmare' due to loan charge, Treasury is told