Asked by: Victoria Collins (Liberal Democrat - Harpenden and Berkhamsted)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has made an assessment of the potential impact of the quarterly instalment payment regime on companies that realise large but infrequent capital gains, particularly in cases where tax liabilities cannot be known at the point quarterly payments fall due.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
If a company or a group's annual profits exceed £1.5 million, they will be classed as ‘large’ and will be required to pay their Corporation Tax in quarterly instalments. This long-standing regime ensures that larger companies pay their Corporation Tax bill closer to the point at which they make a profit, which is in line with other G7 countries.
Companies must self-assess whether they are in the regime and pay accordingly. Where liabilities may be difficult to predict, including from capital gains, companies should make their best estimate of instalment payments based on the information available at the time. Payments can be adjusted up or down as the final liability becomes clearer, and if they prove to be excessive a repayment can be claimed.
As always for late paid tax, interest is charged to reflect the time value of money. Recognising the estimated nature of the instalments, special rates of interest apply which charge less for late payment, and pay more for overpayment, than the normal rates.
The Government keeps the impact of the quarterly instalment payment regime, including associated interest rules, under review.
Asked by: Victoria Collins (Liberal Democrat - Harpenden and Berkhamsted)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of interest charges on companies that are unable to estimate quarterly instalment payments accurately due to the unpredictable timing and size of capital gains.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
If a company or a group's annual profits exceed £1.5 million, they will be classed as ‘large’ and will be required to pay their Corporation Tax in quarterly instalments. This long-standing regime ensures that larger companies pay their Corporation Tax bill closer to the point at which they make a profit, which is in line with other G7 countries.
Companies must self-assess whether they are in the regime and pay accordingly. Where liabilities may be difficult to predict, including from capital gains, companies should make their best estimate of instalment payments based on the information available at the time. Payments can be adjusted up or down as the final liability becomes clearer, and if they prove to be excessive a repayment can be claimed.
As always for late paid tax, interest is charged to reflect the time value of money. Recognising the estimated nature of the instalments, special rates of interest apply which charge less for late payment, and pay more for overpayment, than the normal rates.
The Government keeps the impact of the quarterly instalment payment regime, including associated interest rules, under review.
Asked by: Lloyd Hatton (Labour - South Dorset)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how much and what proportion of the wealthy tax gap HMRC attributes to (a) Capital Gains Tax and (b) Inheritance Tax for each financial year from 2017-18 to 2024-25.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Wealthy tax gap estimates are published in Measuring the Tax Gap 2025 for 2005-06 to 2023-24. There are no estimates for 2024-25 at this time, these will be published in future tax gap publications.
We use Income Tax, Capital Gains Tax (CGT) and National Insurance Contributions (NICs) data in our estimate of the Self-Assessment (SA) wealthy tax gap. It is not possible to separately estimate the CGT share within this tax gap. We are therefore unable to provide the details for CGT.
The overall wealthy tax gap, detailed in Chapter 1 Figure 1.4 of MTG25 and Table 1.4 of the online tables, breaks down as follows:
(£ billion) | 2017/18 | 2018/19 | 2019/20 | 2020/21 | 2021/22 | 2022/23 | 2023/24 |
Self-Assessment | 1.43 | 1.35 | 1.34 | 1.23 | 1.67 | 1.78 | 1.95 |
Inheritance Tax | 0.20 | 0.19 | 0.19 | 0.10 | 0.20 | 0.12 | 0.15 |
Stamp Duties | 0.02 | 0.05 | 0.05 | 0.04 | 0.04 | 0.05 | 0.04 |
Net Gap | 1.65 | 1.59 | 1.58 | 1.37 | 1.92 | 1.95 | 2.13 |
Or as a percentage share of the overall wealthy tax gap:
(£ billion) | 2017/18 | 2018/19 | 2019/20 | 2020/21 | 2021/22 | 2022/23 | 2023/24 |
Self-Assessment | 86.7% | 85.0% | 84.7% | 90.0% | 87.2% | 91.6% | 91.3% |
Inheritance Tax | 11.9% | 12.1% | 12.1% | 7.1% | 10.5% | 6.0% | 6.9% |
Stamp Duties | 1.4% | 2.9% | 3.2% | 2.9% | 2.3% | 2.4% | 1.7% |
Asked by: James Cleverly (Conservative - Braintree)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether Valuation Office Agency staff will have their contractual terms amended following its merger with HMRC.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Valuation Office Agency will close from 1 April 2026 with all colleagues transferring into HMRC. Colleagues will transfer under the Cabinet Office Statement of Practice (COSoP) with which HMRC and the VOA have complied in full.
All contractual terms currently held by colleagues working for the VOA have been protected as a matter of principle during this process and will be honoured in full on transfer to HMRC.
HMRC and VOA have consulted with VOA’s recognised Trade Unions during the COSoP process to ensure that meaningful engagement and discussion has taken place concerning all matters relating to the transfer.
Asked by: James Cleverly (Conservative - Braintree)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the Valuation Office Agency plans to publish an ad-hoc release for (a) Non-domestic rating: properties over £500,000 and (b) Non-domestic rating: summary of properties over £500,000, based on the 2026 Rating List.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
This information was included in the Change in rateable value of rating lists, 2026 Revaluation publication:
Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of recent exemptions or carve-outs granted to large United States multinational enterprises under the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting on (a) the effectiveness of the global minimum tax, (b) UK tax revenues, and (c) the principle of equal treatment between multinational enterprises operating in the UK.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The UK, with more than 140 members of the G20/OECD Inclusive Framework have reached agreement on a package of reforms to the Pillar 2 Global Minimum Tax system to address how it should interact with US minimum tax rules.
As set out in my written statement to the House on 7th January, these changes bring stability and clarity for business, as well as protection from retaliatory measures. At the same time, the largest multinationals will continue to pay their fair share of tax through comprehensive systems of global minimum taxation.
This agreement underlines the continued commitment of the UK and others to tackle aggressive tax planning by multinational enterprises and preserve the level playing field.
All multinationals are subject to the 25% Corporation Tax rate on profits they make in the UK, and they remain subject to the UK’s domestic minimum tax rate of 15%.
The changes will be fully costed with the OBR in in the usual way as the UK brings forward legislation in the next Finance Bill.
Asked by: Kerry McCarthy (Labour - Bristol East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps her Department is taking to ensure coherence between the Soft Drinks Industry Levy and other Government frameworks, including nutrient profiling, dietary guidance and restrictions on foods high in fat, sugar and salt.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
When considering the reforms to the Soft Drinks Industry Levy (SDIL) announced at Budget 2025, HM Treasury worked closely with the Department for Health and Social Care throughout the process, including to consider whether the SDIL minimum sugar content threshold could, and should, align with the nutrient profiling model (NPM). However, it would be complex to align the SDIL, which applies only to drinks and is based on sugar content alone, with the NPM, which determines what are ‘less healthy’ foods and drinks by balancing a range of beneficial and less beneficial nutrients.
The government judges that the new SDIL threshold of 4.5g total sugar per 100ml strikes a fair balance between delivering on the SDIL’s health objectives and supporting producers with the process of reformulation.
Given the government recognises that these reforms ask soft drink producers to adapt and invest in further reformulation, and that certainty is required to support this process, the Chancellor has committed to not make any further changes to the design of the SDIL this Parliament.
Asked by: Laurence Turner (Labour - Birmingham Northfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the oral contribution of the Exchequer Secretary to the Treasury of 27 January 2026 on Business Rates, whether changes to the business rates for pubs will include social clubs.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
All pubs and live music venues that meet the definitions set out in guidance will qualify for the business rates support announced on 27 January 2026.
In keeping with the intent of this policy, the Government is working with Local Authorities to ensure this includes establishments that are open to wide sections of local communities. This includes social clubs, such as working men's clubs.
I would like to thank my Honourable Friend for all his representations and engagement on this matter.
Asked by: Lloyd Hatton (Labour - South Dorset)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many additional HMRC debt management staff she plans to recruit in each of the next five years.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government announced investment at the Budget in October 2024 and the Spring Statement in March 2025 to enable HMRC to recruit and retain 2,400 debt management officers in addition to growing by 5,500 compliance officers by 2029-30, with further funding for the former announced at the Budget in November 2025.
This funding means that HMRC will retain 1,200 current Debt Management staff, who would have moved onto other roles, to focus on debt collection activity until the end of 2029-30 and will grow its workforce by 1,200 more people over this period. The majority of new recruits are funded from 2026-27, and all additional staff will be in position by 2028-29.
HMRC is already well underway in recruiting 5,500 additional compliance officers who will join by the end of the decade. HMRC is welcoming around 2,000 total compliance officers each financial year, which includes baseline recruitment, an approximate 1,000 additional compliance officers funded by Government investment, and also accounts for anticipated attrition.
Since November 2024, over 1,500 additional compliance officers have joined HMRC’s Customer Compliance Group (CCG).
Asked by: Lloyd Hatton (Labour - South Dorset)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps HMRC plans to take to increase the recruitment of compliance and debt management staff.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government announced investment at the Budget in October 2024 and the Spring Statement in March 2025 to enable HMRC to recruit and retain 2,400 debt management officers in addition to growing by 5,500 compliance officers by 2029-30, with further funding for the former announced at the Budget in November 2025.
This funding means that HMRC will retain 1,200 current Debt Management staff, who would have moved onto other roles, to focus on debt collection activity until the end of 2029-30 and will grow its workforce by 1,200 more people over this period. The majority of new recruits are funded from 2026-27, and all additional staff will be in position by 2028-29.
HMRC is already well underway in recruiting 5,500 additional compliance officers who will join by the end of the decade. HMRC is welcoming around 2,000 total compliance officers each financial year, which includes baseline recruitment, an approximate 1,000 additional compliance officers funded by Government investment, and also accounts for anticipated attrition.
Since November 2024, over 1,500 additional compliance officers have joined HMRC’s Customer Compliance Group (CCG).