Asked by: Lord Vinson (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what is the annual cost to the Exchequer of the tax foregone due to tax relief on charitable donations (1) in the last year, and (2) over the last five years.
Answered by Lord Bates
Tax relief is available on donations to charity by individuals and organisations, and to charities for their activities, including investment income.
Information about tax relief on charities’ investment income, and on charitable donations by organisations is not readily available.
Estimates for tax reliefs on charitable donations by individuals are published in “UK charity tax relief statistics”. The table below is an extract from the latest edition.
Extract from Table 2: Estimates for UK charities tax reliefs. Updated June 2018. Restricted to those reliefs for which accurate figures can be estimated
£m | Reliefs paid to charities | Reliefs paid to individuals | ||||
Tax Year | Gift Aid | Gift Aid Small Donations Scheme | Inheritance Tax | Payroll Giving | Gifts of shares and property | Higher Rate Relief on Gift Aid |
2013-14 | 1060 | 10 | 660 | 40 | 60 | 410 |
2014-15 | 1210 | 20 | 700 | 40 | 60 | 480 |
2015-16 | 1300 | 30 | 800 | 40 | 70 | 500 |
2016-17 | 1280 | 30 | 840 | 40 | 70 | 490 |
2017-18 | 1270 | 30 | 860 | 40 | 70 | 490 |
Asked by: Lord Vinson (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government, further to the Written Answer by Lord Bates on 19 March (HL6520), why they have not estimated the number of tax residency self-certification forms that have been completed or will be completed annually in future; and what assessment they have made of the extent to which a full regulatory impact assessment can be prepared without such estimates.
Answered by Lord Bates
The Common Reporting Standard (CRS) is the global standard for the exchange of financial account information. Under the CRS financial institutions are required to obtain and report the tax residence information of their account holders. The information that tax authorities will receive under the CRS is a vital part of global efforts to tackle offshore tax evasion and increase tax transparency. Under the CRS financial institutions are required to carry out due diligence procedures, including obtaining tax residency self-certifications from some account holders.
HMRC does not consider estimating the number of tax residency self-certification forms received by financial institutions or estimating how many account holders annually will self-certify in future to be a useful exercise at this time. A Tax Information and Impact Note was published on 18 March 2015 in accordance with the government’s tax policy making process.
HMRC continues to monitor the impact of the CRS through information collected through the information exchange arrangements, competent authority discussions, tax returns and compliance work undertaken by HMRC.
Asked by: Lord Vinson (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what is their estimate of the number of tax residency self-certification forms completed by (1) individuals, (2) entities, and (3) controlling persons, since the introduction in the UK of the Common Reporting Standards; and how many such forms they estimate will be completed annually in future.
Answered by Lord Bates
The estimated economic impact of implementing the Common Reporting Standard and the estimated costs to business were set out in a Tax Information and Impact Note (TIIN) published on 18 March 2015.
Tax residency self-certification forms are requested by financial institutions to help determine whether account holders are reportable under the CRS. The Government has not estimated the number of tax residency self-certification forms that have been completed or will be completed annually in future.
Asked by: Lord Vinson (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what is their estimate of the costs to (1) banks, (2) insurance companies, (3) charities, and (4) other financial institutions, of the universal application of the Common Reporting Standards and consequent obligations on individuals, entities and controlling persons to complete tax residency self-certification forms, including for multiple institutions.
Answered by Lord Bates
The estimated economic impact of implementing the Common Reporting Standard and the estimated costs to business were set out in a Tax Information and Impact Note (TIIN) published on 18 March 2015.
Tax residency self-certification forms are requested by financial institutions to help determine whether account holders are reportable under the CRS. The Government has not estimated the number of tax residency self-certification forms that have been completed or will be completed annually in future.
Asked by: Lord Vinson (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what is their estimate of the cost to the UK economy of the universal application of the Common Reporting Standards and consequent obligations on individuals, entities and controlling persons to complete tax residency self-certification forms, including for multiple institutions.
Answered by Lord Bates
The estimated economic impact of implementing the Common Reporting Standard and the estimated costs to business were set out in a Tax Information and Impact Note (TIIN) published on 18 March 2015.
Tax residency self-certification forms are requested by financial institutions to help determine whether account holders are reportable under the CRS. The Government has not estimated the number of tax residency self-certification forms that have been completed or will be completed annually in future.
Asked by: Lord Vinson (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government whether they intend to make it a condition of listing that administrators of collective investments declare their shorting positions, and have been fully authorised by the beneficial owners of those shares before lending those shares for shorting purposes.
Answered by Lord Bates
This is a matter for the Financial Conduct Authority (FCA), which is operationally independent from government.
This question has been passed on to the FCA. They will reply directly to the Noble Lord by letter. A copy of the letter will be placed in the Library of the House.
Asked by: Lord Vinson (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the extent to which the beneficial owners of shares held in collective investments are fully aware when those shares have been lent for shorting purposes and have given their permission accordingly.
Answered by Lord Bates
This is a matter for the Financial Conduct Authority (FCA), which is operationally independent from government.
This question has been passed on to the FCA. They will reply directly to the Noble Lord by letter. A copy of the letter will be placed in the Library of the House.
Asked by: Lord Vinson (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government whether they intend to review the application of the Common Reporting Standard to small charities, including Parochial Church Councils, that are currently obliged to complete Tax Jurisdiction Entity Certification in the same manner as financial institutions, in the light of the considerable cost of doing so, and of the lack of any <i>de minimis</i> exemption for small donations; and if so, when.
Answered by Baroness Neville-Rolfe - Minister of State (Cabinet Office)
The Common Reporting Standard (CRS) is the global standard for the exchange of financial account information and any changes would need to be agreed internationally. Under the CRS financial institutions, including some charities, are required to obtain and report tax residence information of their account holders. The information that tax authorities will receive under the CRS, including that on distributions from charities, is a vital part of global efforts to tackle offshore tax evasion and increase tax transparency.
Consistent implementation of the CRS by all adopting jurisdictions is important to create a level playing field and to ensure that avoidance loopholes are not created.
Officials in HM Revenue and Customs are working closely with charity sector representatives to minimise the compliance burden.
Asked by: Lord Vinson (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government, in the light of the fact that most small businesses assess their profits annually in arrears, whether it is the intention of HM Revenue and Customs to make small businesses report their income and expenditure quarterly; and what assessment they have made of the feasibility of this requirement.
Answered by Lord Young of Cookham
HM Revenue and Customs published a consultation document setting out the Government’s proposals on 15 August 2015 entitled “Making Tax Digital: Bringing business tax into the digital age”. The consultation included an initial assessment of the impacts on businesses. The consultation closed on 7 November. The government is currently considering the responses to the Making Tax Digital consultations and will publish its response and draft legislation in January, together with an updated Tax Impact Assessment.
Asked by: Lord Vinson (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government what assessment they have made of whether high frequency trading has utility and is in the national interest.
Answered by Lord Young of Cookham
The Government sponsored the Foresight Project, which reported in 2012, to analyse the role, development, and impact of computer-based trading – including high frequency trading – in financial markets. The Future of Computer Trading in Financial Markets report highlighted the benefits of computer-based trading for the operation of markets, in particular relating to liquidity, transaction costs, and the efficiency of market prices, while also considering the implications for financial stability.