Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, with reference to Figure 8 of HMRC's Annual Report 2016-17, what methodology was used to assess the cost of providing personal tax credits and other reliefs at £30.5billion.
Of the £30.5bn referred to in figure 13, page 42 of HMRC’s accounts, the majority (27.1bn) relates to personal tax credits (further details at page 190).
The methodology for calculating Personal Tax credits expenditure considers three main elements;
The other significant element of the £30.5bn expenditure relates to Corporation tax reliefs (£3.4bn). These values are based on forecasts made at the Spring Budget 2017. The expenditure for other reliefs are based on their take up which is refined and analysed on an annual basis.