Asked by: Graham Stuart (Conservative - Beverley and Holderness)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many charities were required to submit Corporation Tax returns that gave rise to Corporation Tax liability in each of the last five years for which data are available.
Answered by James Murray - Financial Secretary to the Treasury and Paymaster General
The approximate number of charities that were issued a notice to file a Corporation Tax return in each of the five tax years to 2024/25 is:
Tax Year | Charities issued a notice to file (rounded to the nearest 50) |
2020/21 | 16,700 |
2021/22 | 18,000 |
2022/23 | 17,550 |
2023/24 | 18,800 |
2024/25 | 20,100 |
The approximate number of companies identified as charities that had late-filing penalties charged in each of the five tax years to 2024/25 is:
Tax Year | Charities with penalties charged (rounded to the nearest 50) |
|
2020/21 | 1,300 |
|
2021/22 | 1,550 |
|
2022/23 | 1,600 |
|
2023/24 | 2,250 |
|
2024/25 | 3,450 |
|
The number of charities that had a Corporation Tax liability in each of the five tax years to 2024/25 is:
Tax Year | Charities with Corporation Tax liability (rounded to the nearest 50) |
2020/21 | 350 |
2021/22 | 300 |
2022/23 | 300 |
2023/24 | 300 |
2024/25 | 300 |
HMRC keeps Corporation Tax administration for charities under review.
Asked by: Graham Stuart (Conservative - Beverley and Holderness)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many charities were issued penalties for late filing or non-submission of Corporation Tax returns in each of the last five years for which data are available.
Answered by James Murray - Financial Secretary to the Treasury and Paymaster General
The approximate number of charities that were issued a notice to file a Corporation Tax return in each of the five tax years to 2024/25 is:
Tax Year | Charities issued a notice to file (rounded to the nearest 50) |
2020/21 | 16,700 |
2021/22 | 18,000 |
2022/23 | 17,550 |
2023/24 | 18,800 |
2024/25 | 20,100 |
The approximate number of companies identified as charities that had late-filing penalties charged in each of the five tax years to 2024/25 is:
Tax Year | Charities with penalties charged (rounded to the nearest 50) |
|
2020/21 | 1,300 |
|
2021/22 | 1,550 |
|
2022/23 | 1,600 |
|
2023/24 | 2,250 |
|
2024/25 | 3,450 |
|
The number of charities that had a Corporation Tax liability in each of the five tax years to 2024/25 is:
Tax Year | Charities with Corporation Tax liability (rounded to the nearest 50) |
2020/21 | 350 |
2021/22 | 300 |
2022/23 | 300 |
2023/24 | 300 |
2024/25 | 300 |
HMRC keeps Corporation Tax administration for charities under review.
Asked by: Graham Stuart (Conservative - Beverley and Holderness)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many UK based charities were asked to file Corporation Tax returns in each of the last five years for which data are available.
Answered by James Murray - Financial Secretary to the Treasury and Paymaster General
The approximate number of charities that were issued a notice to file a Corporation Tax return in each of the five tax years to 2024/25 is:
Tax Year | Charities issued a notice to file (rounded to the nearest 50) |
2020/21 | 16,700 |
2021/22 | 18,000 |
2022/23 | 17,550 |
2023/24 | 18,800 |
2024/25 | 20,100 |
The approximate number of companies identified as charities that had late-filing penalties charged in each of the five tax years to 2024/25 is:
Tax Year | Charities with penalties charged (rounded to the nearest 50) |
|
2020/21 | 1,300 |
|
2021/22 | 1,550 |
|
2022/23 | 1,600 |
|
2023/24 | 2,250 |
|
2024/25 | 3,450 |
|
The number of charities that had a Corporation Tax liability in each of the five tax years to 2024/25 is:
Tax Year | Charities with Corporation Tax liability (rounded to the nearest 50) |
2020/21 | 350 |
2021/22 | 300 |
2022/23 | 300 |
2023/24 | 300 |
2024/25 | 300 |
HMRC keeps Corporation Tax administration for charities under review.
Asked by: Graham Stuart (Conservative - Beverley and Holderness)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what work HMRC is undertaking to simplify corporation tax administration for charities.
Answered by James Murray - Financial Secretary to the Treasury and Paymaster General
The approximate number of charities that were issued a notice to file a Corporation Tax return in each of the five tax years to 2024/25 is:
Tax Year | Charities issued a notice to file (rounded to the nearest 50) |
2020/21 | 16,700 |
2021/22 | 18,000 |
2022/23 | 17,550 |
2023/24 | 18,800 |
2024/25 | 20,100 |
The approximate number of companies identified as charities that had late-filing penalties charged in each of the five tax years to 2024/25 is:
Tax Year | Charities with penalties charged (rounded to the nearest 50) |
|
2020/21 | 1,300 |
|
2021/22 | 1,550 |
|
2022/23 | 1,600 |
|
2023/24 | 2,250 |
|
2024/25 | 3,450 |
|
The number of charities that had a Corporation Tax liability in each of the five tax years to 2024/25 is:
Tax Year | Charities with Corporation Tax liability (rounded to the nearest 50) |
2020/21 | 350 |
2021/22 | 300 |
2022/23 | 300 |
2023/24 | 300 |
2024/25 | 300 |
HMRC keeps Corporation Tax administration for charities under review.
Asked by: Graham Stuart (Conservative - Beverley and Holderness)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of excluding soft play centres and other family focused venues from the 15 per cent business rates discount for pubs and music venues on those businesses; and whether she plans to extend equivalent relief to venues serving children, parents and carers.
Answered by Dan Tomlinson - Exchequer Secretary (Cabinet Office) (Jointly with HM Treasury)
Pubs rents in business rates valuations are analysed differently to some other sectors. While most hospitality and leisure properties are valued by comparing the size of the property, pubs are valued by comparing their turnover potential. Industry bodies have highlighted concerns with how costs are accounted for in this methodology, particularly during periods of high inflation. There is significant overlap between the pub sector and live music venues, with many pubs serving as grassroots live music venues, meaning they are often valued for business rates purposes in a similar way.
The new pubs and live music venues relief is on top of the £4.3 billion support package announced at the Budget to support ratepayers across all sectors seeing bill increases. As a result of the Budget package, over half of ratepayers will see no bill increases. This also means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.
The Government is also introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties, including soft play centres. These new tax rates are worth nearly £1 billion per year, and will benefit over 750,000 properties.
Asked by: Graham Stuart (Conservative - Beverley and Holderness)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the proposed increase in the rateable values of pubs on the level of their profitability.
Answered by Dan Tomlinson - Exchequer Secretary (Cabinet Office) (Jointly with HM Treasury)
The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.
At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.
More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto.
The Government is doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties, including those on the high street.
The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.
Treasury Ministers and officials engaged with a wide range of stakeholders across the pub and hospitality sector ahead of the Budget to discuss business rates.
Asked by: Graham Stuart (Conservative - Beverley and Holderness)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential implications for her policies on the threshold for agricultural property relief and business property relief of the proportion of commercial farms that are valued at over £1 million.
Answered by James Murray - Financial Secretary to the Treasury and Paymaster General
The Government published information about the reforms to agricultural property relief and business property relief at www.gov.uk/government/publications/agricultural-property-relief-and-business-property-relief-reforms.
It is expected that up to around 2,000 estates will be affected by the changes to APR and BPR in 2026-27, with around half of those being claims that involve AIM shares. Almost three-quarters of estates claiming agricultural property relief (or those claiming agricultural property relief and business property relief together) are expected to be unaffected by these reforms.
In accordance with standard practice, a tax information and impact note will be published alongside the draft legislation before the relevant Finance Bill.
Asked by: Graham Stuart (Conservative - Beverley and Holderness)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department made of the potential impact of changes to the threshold for agricultural property relief and business property relief on (a) farm businesses and (b) people who bought land to reduce Inheritance Tax; what data she has used for that assessment; and what assessment she has made of the potential implications for her policies of the findings of that assessment.
Answered by James Murray - Financial Secretary to the Treasury and Paymaster General
The Government published information about the reforms to agricultural property relief and business property relief at www.gov.uk/government/publications/agricultural-property-relief-and-business-property-relief-reforms.
It is expected that up to around 2,000 estates will be affected by the changes to APR and BPR in 2026-27, with around half of those being claims that involve AIM shares. Almost three-quarters of estates claiming agricultural property relief (or those claiming agricultural property relief and business property relief together) are expected to be unaffected by these reforms.
In accordance with standard practice, a tax information and impact note will be published alongside the draft legislation before the relevant Finance Bill.
Asked by: Graham Stuart (Conservative - Beverley and Holderness)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to her Oral Statement of 30 October 2024 on Financial Statement and Budget Report, Official Report, column 819, what the evidential basis is for the estimate that 75% of family farms will not be affected by the changes to agricultural property relief.
Answered by James Murray - Financial Secretary to the Treasury and Paymaster General
The Government has published information about reforms to agricultural property relief at: https://www.gov.uk/government/news/what-are-the-changes-to-agricultural-property-relief.
Almost three-quarters of estates claiming agricultural property relief (or those claiming agricultural property relief and business property relief together) in 2026-27 are expected to be unaffected by these reforms.
Historic data published by HMRC shows that in 2021-22, 73% of estates making agricultural property relief claims did so on total amounts worth less than £1m.
HMRC is commissioned by the Office for Budget Responsibility (OBR) at each fiscal event to produce Inheritance Tax receipts forecasts. More information behind this process is published on the OBR website: https://obr.uk/forecasts-in-depth/tax-by-tax-spend-by-spend/inheritance-tax/.
HMRC analysis suggests that in 2026-27, 500 estates claiming agricultural property relief will receive a lower financial benefit as a result of the Government’s reforms, out of a projected total of 1,800 estates making agricultural property relief claims in that year. This means that around three-quarters of estates making agricultural property relief claims will be unaffected by this measure.
Asked by: Graham Stuart (Conservative - Beverley and Holderness)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to paragraph 2.51 of the Autumn Budget 2024, on what evidential basis she reduced Agricultural Property Relief on combined agricultural and business assets valued over £1 million.
Answered by James Murray - Financial Secretary to the Treasury and Paymaster General
The Government has published information about reforms to agricultural property relief at: https://www.gov.uk/government/news/what-are-the-changes-to-agricultural-property-relief.
Almost three-quarters of estates claiming agricultural property relief (or those claiming agricultural property relief and business property relief together) in 2026-27 are expected to be unaffected by these reforms.
Historic data published by HMRC shows that in 2021-22, 73% of estates making agricultural property relief claims did so on total amounts worth less than £1m.
HMRC is commissioned by the Office for Budget Responsibility (OBR) at each fiscal event to produce Inheritance Tax receipts forecasts. More information behind this process is published on the OBR website: https://obr.uk/forecasts-in-depth/tax-by-tax-spend-by-spend/inheritance-tax/.
HMRC analysis suggests that in 2026-27, 500 estates claiming agricultural property relief will receive a lower financial benefit as a result of the Government’s reforms, out of a projected total of 1,800 estates making agricultural property relief claims in that year. This means that around three-quarters of estates making agricultural property relief claims will be unaffected by this measure.