Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what methodology is used by HMRC to determine a “low”, “medium” or “high” probity risk rating in the honours vetting process.

HMRC’s role in the honours system is advisory and not decision making – it provides an advisory low, medium or high risk rating which is considered by the Honours Committees, alongside information from other departments, in their decision making.

The probity risk rating is based on information held at the time of the check. HMRC does not disclose taxpayer details. The legal basis for disclosure of the rating is set out in published Memoranda of Understanding (MOU) with other government departments (see https://www.gov.uk/government/collections/hmrc-awards-and-appointments) and the criteria for determining ratings are set out at Annex C of the MOUs. Senior HMRC officials receive reports of nominee’s tax behaviour and apply the published Risk Rating Matrix in the MoU to arrive at a rating. HMRC has been providing advisory risk ratings under this framework since 2023.