Asked by: Lord Sikka (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, further to the Written Answer by Baroness Vere of Norbiton on 5 February (HL1819), when Dame Linda Dobbs’ review into Lloyds Banking Group and HBOS Reading began; what period is covered by the review; when the review is due to be completed; when the review is expected to be completed; whether, and if so when, an interim report was published and how many victims of the fraud committed by six then employees of HBOS Reading have given evidence.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
The Dame Linda Dobbs Review was commissioned by Lloyds Banking Group, so HM Treasury is not in a position to answer questions on the scope and timing of the Review. You can find information about the review on its website (https://www.dobbsreview.com/), where an update was published earlier this month, and which has information on how to contact the Review.
When complete, the findings of the Dame Linda Dobbs Review will be shared with the FCA. The FCA will then consider whether further action is appropriate.
Asked by: Lord Sikka (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether they will launch an independent inquiry into banking fraud at HBOS and Lloyds Banking Group.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
These issues are a matter for the Financial Conduct Authority (FCA) first and foremost as the independent non-governmental body responsible for regulating and supervising the financial services industry.
Dame Linda Dobbs DBE has been appointed by Lloyds Banking Group to consider whether the issues relating to HBOS Reading were investigated and appropriately reported to authorities at the time.
When complete, the findings of the Dame Linda Dobbs Review will be shared with the FCA. The FCA will then consider whether further action is appropriate.
Asked by: Lord Sikka (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government how many people and corporate bodies have been investigated, charged, and prosecuted for facilitating tax evasion under the Criminal Finances Act 2017, and what the outcomes of these investigation and enforcement activities have been in each case.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
The Criminal Finances Act 2017 came into effect on 30 September 2017 and are new offences applicable to organisations that fail to prevent the facilitation of tax evasion from that date onwards.
Updates on the number of HMRC interventions are provided bi-annually on Gov.UK pages Number of live Corporate Criminal Offences investigations - GOV.UK (www.gov.uk)
The Criminal Finances Act 2017 is specific legislation in relation to corporates and not individuals, so the element of the question pertaining to individuals is not applicable and no information can be provided in that respect.
However, as per a previous PQ HL6278 asked on 8th March 2023, tackling enablers of tax fraud remains a top priority for HMRC. HMRC is working with partners across the world to take action against enablers.
Asked by: Lord Sikka (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government how many adults in the UK are not expected to pay any income tax in 2023–24.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
The number of adults (people aged 18 and over) in the UK estimated to not pay any Income Tax in 2023-24 is approximately 17.8 million (rounded to 3 significant figures).
Asked by: Lord Sikka (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what plans they have to investigate the rates of saving by UK households.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
The Government is committed to incentivising greater saving and investment, to help households save for their future goals and build greater financial resilience.
Individuals can save up to £20,000 into an Individual Savings Account (ISA) each year, and any savings income received on cash within an ISA is tax free. This, coupled with the Personal Savings Allowance of up to £1,000 for basic rate taxpayers and up to £500 for higher rate taxpayers, means that around 90% of people with savings income pay no tax on that income. Individuals aged 18 or over but under 40 can also open a Lifetime ISAs to save for buying a first home or for later life.
Last year, the Chancellor also secured agreement from the FCA to review the cash savings market. As a result, the FCA have published a 14-point action plan. Under the plan, firms should ensure they are effectively communicating their full range of suitable savings products to customers.
The Government will continue to monitor the rates of saving by UK households as part of its wider economic monitoring.
Asked by: Lord Sikka (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the tax revenues which could be raised by aligning the capital gains tax rates with those applied to wages and salaries.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
As set out in the Government’s response to the Office of Tax Simplification's report on Capital Gains Tax (CGT) on 30 November 2021, substantial reforms to CGT rates and allowances would involve a number of wider policy trade-offs and so careful thought must be given to the impact that they would have on taxpayers, as well as any additional administrative burden on HMRC.
The Government will continue to keep the tax system under review to ensure it is simple and efficient.
Asked by: Lord Sikka (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the revenues which could be raised by levying national insurance upon chargeable capital gains.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
National Insurance contributions (NICs) are part of the UK’s social security system. The system, based around the longstanding contributory principle, is centred around paid employment and self-employment, with employers, employees and the self-employed paying into the National Insurance Fund and providing funding for the NHS. Payment of NICs builds an individual’s entitlement to claim contributory benefits which then replace earnings in certain circumstances, for example if someone is unable to work or is retired. Non-employment income is generally excluded from liability to NICs as it is not derived from paid employment. Consequently, individuals with only non-employment income need to pay voluntary NICs in order to build entitlement.
The Government keeps all taxes under review.
Asked by: Lord Sikka (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government how many prosecutions were brought by HMRC against the enablers of tax evasion in each year for the last 10 years; for each year, how many penalties were secured as a result of successful prosecutions; and what was the value of those penalties.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
Tackling enablers of tax fraud is a top priority for HMRC. HMRC is working with partners across the World to take action against enablers.
Criminal investigation is only one route that HMRC pursues when it identifies serious non-compliance. The Department uses its full range of powers to tackle these abuses, including civil tax investigation methods which can result in punitive fines and penalties.
Prosecutions of Professional Enablers of Tax Evasion
Financial Year Prosecutions
2017-18 15
2018-19 29
2019-20 14
2020-21 4
2021-22 4
Since the launch of our Fraud Investigation Service in 2015/16, we have launched over 80,000 civil cases and more than 3,600 criminal investigations, securing and protecting £25.5bn for our vital public services and securing 3,200 criminal convictions. We have in excess of 100 enablers currently under investigation.
Information relating to earlier years is not available. HMRC officials are unable to provide data on civil penalties raised as a result of civil investigations into professional enablers of tax evasion as this cannot be extracted from management information held.
Asked by: Lord Sikka (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what additional tax revenues they have collected since the implementation of the Energy (Oil and Gas) Profits Levy Act 2022.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
Monthly Energy Profits Levy receipts are published on GOV.UK in HMRC tax receipts and National Insurance contributions for the UK[1].
[1]here.
Asked by: Lord Sikka (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, further to the Energy (Oil and Gas) Profits Levy Act 2022, whether they will publish a list showing the total amount (1) collected, and (2) paid, by each company.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
The government does not comment on individual taxpayers. At the time of the Autumn Statement, the Office for Budget Responsibility estimated that total revenues from the Energy Profits Levy were expected to be £41.6bn over the following five years. HMRC routinely publishes outturn oil and gas receipts on GOV.UK.