One of the measures dropped from the first Finance Act 2017 was a provision imposing a charge under Part 7A of the Income Tax (Earnings and Pensions) Act 2003 on loans outstanding on 5 April 2019. On 13 July 2017, the Government confirmed that the Finance Bill (No. 2) 2017 will contain a slightly revised provision.

The main change is the addition of a new disregard where a payment of the principal is made on or after 17 March 2016, where that repayment is the subject of a later relevant step taken before either 5 April 2019, or the repayment date of an approved fixed term loan.

Details of the draft legislation can be found here.