Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the implications for his policies of the publication entitled OECD/G20 Inclusive Framework on BEPS: Progress Report September 2022-September 2023, published on 11 October 2023; and if he will make it his policy to (i) support the UN Africa Group’s draft resolution on the Framework Convention on International Tax Cooperation and (ii) make representations at the UN on ratification of that proposed convention by June 2025.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
The UK strongly supports developing countries’ efforts to scale-up domestic resource mobilisation to finance sustainable development.
The International Development White Paper published on Monday 20th November commits to building a stronger and fairer international tax system for all.
In line with this, the UK supports the work of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting, which allows closer international tax co-operation among more than 140 countries and jurisdictions; and the OECD/G20 Global Forum on Tax Transparency and Exchange of Information, which has 169 members and whose work has identified over EUR 41 billion of additional revenues by developing countries to date.
However, the UK, alongside many other countries, is concerned that proceeding with a UN convention on international tax at this time would not be the most effective way to achieve these goals. An explanation of Vote was published on GOV.UK on 22nd November. [link]
Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make it his policy to extend the Retail, Hospitality and Leisure Business Rates Relief Scheme beyond the current deadline.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
At Autumn Statement 2022 the Government announced an increased 75% relief for retail, hospitality and leisure properties, up to a cash cap of £110,000 per business for 2023-24. This is a tax cut worth over £2 billion for around 230,000 RHL businesses, to support the high street and protect small shops.
Decisions on future business rates support will be made in due course.
Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate his Department has made of the value of tax relief available for the development of the Rosebank oil field under the investment allowance; and if he will place a copy of that estimate in the Library of the House.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
Estimates of the cost of tax reliefs available to oil and gas companies under the Ring-Fence Corporation Tax (RFCT) and the Supplementary Charge (SC) are published at https://www.gov.uk/government/collections/tax-relief-statistics.
These estimates do not separate out specific projects or taxpayers to protect taxpayer confidentiality.
Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate his Department has made of the cost to the public purse of the Energy Profits Levy investment allowance relief in the 2022-23 financial year.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
Estimates of the cost of tax reliefs used by oil and gas companies under the Ring Fence tax regime are published at https://www.gov.uk/government/collections/tax-relief-statistics.
Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the cost of the investment allowance relief under the Energy Profits Levy in each financial year to 2025/2026; and if he will place a copy of that estimate in the Library of the House.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
Estimates of the cost of tax reliefs used by oil and gas companies under the Ring Fence tax regime are published at https://www.gov.uk/government/collections/tax-relief-statistics.
Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of introducing a tax on windfall profits from the banking sector.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
Banks already face an additional rate of tax on their profits in the form of the Bank Corporation Tax Surcharge – meaning they pay 3% more on their profit than most other businesses. This is in addition to a charge on the largest banks’ balance sheets in the form of the Bank Levy.
Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many self-employed people that did not file their tax returns on time were issued fines worth more than they originally owed in tax in the 2021-22 financial year; if he will (a) take steps to support self-employed people filing their tax returns and (b) make an assessment of the proportionality of fines issued to self-employed people for late filing of a tax return when there is no tax owing; and if he will make a statement.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
HMRC cannot provide this information because data transfer and assurance processes between the live SA system and those used for analytical purposes are not yet complete for the year requested. In addition the penalty life cycle is not yet complete for 2021-22 and many late returns, which will inform Self Employment status and income, have not yet been submitted.
HMRC issues SA tax returns to customers when the information they hold suggests that the customer meets the published criteria for completing one. HMRC often cannot determine someone’s tax liability until they have sent in a tax return, therefore they need the return to establish whether there is tax due or not.
HMRC charges late final penalties to encourage customers to file on time but they can cancel a customer’s late filing penalty if they have a reasonable excuse. Customers can also ask HMRC to remove them from the SA process for future years if they no longer meet the criteria.
HMRC is currently reforming late payment and late filing penalties. Their aim is to encourage those who persistently default to comply with their tax obligations rather than penalise those who make occasional errors.
Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many self-employed people that didn't file their tax returns on time were issued fines worth more than they originally owed in tax in the 2022-23 financial year; if he will (a) take steps to support self-employed people filing their tax returns and (b) make an assessment of the proportionality of fines issued to self-employed people for late filing of a tax return when there is no tax owing; and if he will make a statement.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
HMRC does not have data relating to the 2022/23 SA Returns because customers have until 31 January 2024 to file these returns.
Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 30 November 2022 to Question 93499 on Energy: Taxation, if she will make an estimate of the amount that would be raised by the Energy Profits Levy if tax relief were not provided to companies which invest in new oil and gas extraction in the next six years; and for what reason this information was not provided in the previous Answer.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
The information requested isn't readily available and could only be provided at disproportionate cost.
Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of interest rates on profits in the banking sector.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
UK banks’ profitability has increased as a result of higher interest rates.
That said, increased competition in deposit rates offered by UK banks and macroeconomic uncertainty are likely to put downward pressure on banks’ profits.
The 2022/2023 Bank of England’s stress test indicates that major UK banks would be resilient to a severe stress scenario including higher interest rates.