Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether any revenue raised by the Tonnage Tax is allocated to Scotland.
Tonnage tax is an alternative method of calculating Corporation Tax profits by reference to the net tonnage of the ship operated. It is a reserved tax and applies UK wide.
The Consolidated Fund receives the proceeds of tonnage tax and other tax revenues, such as those collected by Her Majesty’s Revenue and Customs. Tonnage tax is not a hypothecated tax.
When funding is allocated to UK Government departments from the Consolidated Fund the Barnett formula is applied. The Barnett formula provides the devolved administrations with a population share of changes in the UK’s available resources consistent with the principles set out in the Statement of Funding Policy.