What’s happening? Many ordinary people across the UK have lost their life savings, pensions, or investments after being misled, mis-sold to, or defrauded. Now, on top of those losses, many are facing large and often life-changing tax bills from HMRC — even though they were the victims, not the perpetrators. These include: 1. People caught in failed or fraudulent pension schemes 2. People misled into investment tax structures they did not understand 3. Victims formally classified as victims of crime by the police 4. Many others pushed into schemes by unregulated or poorly regulated advisers For many, these tax bills arrive years — sometimes more than a decade — after the events, and with no special protection, no write-offs, and almost no recognition of their victim status. Why are people being taxed if they were victims? Under current UK tax rules, even if someone is tricked into a scheme later found to be fraudulent or abusive, HMRC can still treat the payments they received as taxable — even if the person never benefited, lost money, and was misled throughout. This is because there is no framework or policy in place currently recognising victim status in UK tax matters. That means victims can be told: They owe tens of thousands of pounds, or even more They have 30 days to pay or enter long-term repayment plans Interest and penalties may apply for over a decade Bankruptcy could follow if they cannot pay For many people already ruined by fraud, this is devastating. What changed with the Loan Charge — and why it matters now In 2025, the Government accepted the Independent Loan Charge Review, which admitted that: HMRC’s approach had caused “significant and unacceptable harm” Many people were mis-sold schemes Enforcing the full tax was unfair and disproportionate As a result, the Government announced: 50%+ reductions in many Loan Charge tax bills Around 30% will have their tax completely written off Penalties and interest removed An extra £5,000 written off for everyone affected. This was a major shift: For the first time, the UK accepted that legally-due tax can be reduced or written off when people were misled or harmed. We believe the same principle must now be applied to fraud victims. Why this is urgent? Many fraud victims are now receiving tax bills: Ark pension victims are getting assessments with 30 days to pay Some still cannot get final tax calculations even after 15 years Others face bankruptcy or homelessness. The “V11” footballers — recognised by police as victims of crime — still face multi-million pound tax bills on top of huge financial losses. These people did nothing wrong. They acted in good faith. They were badly let down by advisers, weak regulation, and a system that did not protect them. How other countries protect victims: Other nations do better: Australia After a national investigation, the Australian Tax Office created a Vulnerability Framework to protect people harmed by financial abuse. This allows: - Tax debts to be reduced, deferred or written off - Special teams trained to identify and support victims • A system that avoids adding harm to people already harmed United States After the Bernie Madoff scandal, the US introduced special tax reliefs for ponzi fraud victims. The US also have created: - A statutory Taxpayer Bill of Rights • An independent Taxpayer Advocate Service These ensure the tax system does not punish victims. The UK currently has none of these protections. What we are calling for: We want to ensure victims of fraud are treated fairly, humanely, and consistently. We are calling for: 1. An Independent Review A full review of how HMRC treats investment and pension fraud victims. 2. Immediate protection from harsh enforcement Stopping bankruptcies, home repossessions and unaffordable tax demands for recognised victims of fraud. 3. A UK Taxpayer Bill of Rights A simple, fair set of protections ensuring vulnerable people are not harmed again by the tax system. What you can do: If you or someone you know has been affected: Contact the Investment Fraud Committee Ask your local MP to support a fair review for fraud victims Share your story — it helps us push for change. No victim should be punished for being misled or defrauded. It’s time for a fair system that recognises and protects victims — not one that harms them again.