G7 Global Tax Agreement

Baroness Noakes Excerpts

Tuesday 8th June 2021 Lords Chamber

[Baroness Penn (Con)]

My Lords, as I just said to the right reverend Prelate, the UK robustly supports the BEPS initiative being taken forward by the OECD’s inclusive framework group, which includes more than 100 jurisdictions and ensures that less economically developed countries have an equal say in developing international solutions. I assure the noble Lord that the UK Government also put resources into developing countries to help them to build the tax resources they need, so that they can ensure the effective enforcement of rules and collection of taxation.

[Baroness Noakes (Con)]

My Lords, a lot of the attention has been on the minimum tax rate announced as part of the agreement—I hope the Government will not be tempted to go above the 15%—but more important than the rate is what will be taxed. Does the Minister agree that the UK must not allow global rules to override our freedoms to incentivise investment through things such as freeports and super-deductions?

[Baroness Penn (Con)]

I reassure my noble friend that the UK Government’s freeports will not be affected by this announcement. Freeports are not about corporation tax directly but are designed to support a wide range of businesses with a wide range of tax offers focused on local regeneration, such as full relief from SDLT, enhanced capital and building allowances, business rates relief and NICs relief.