Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the policy paper entitled Multinational top-up tax: UK adoption of Organisation for Economic Co-operation and Development Pillar 2 published on 20 July 2022, by what calculations the estimate of an ongoing annual administrative burden on UK businesses of £8.2m was arrived at; and if he will place a copy of those calculations in the library of the House.

Pillar 2 rules: UK implementation of global minimum corporate tax reforms from 31 December 2023 was announced at Autumn Budget 2022 and is projected to raise over £8.9 billion over the next 5 years.

The £8.2 million average reoccurring annual impact cost was calculated based on HMRC’s Standard Cost Model methodology for determining the administrative impacts of compliant, efficient businesses complying with new measures.