Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how the revenue estimates for the Royalties Withholding Tax proposed in the 2018 Budget calculated were calculated; and whether those calculations took into account the interaction between that measure and tax treaty provisions on the taxation of royalties.

The revenue estimates for the Royalties Withholding Tax (now known as Offshore Receipts in respect to Intangible Property) did take into account the interaction between the measure and the tax treaty provisions on the taxation of royalties. An explanation of how the revenue estimates were calculated for Autumn Budget 2017 was provided in the Autumn Budget 2017 policy costings document - please see page 33:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/752208/Budget_2018_policy_costings_PDF.pdf

The costing was updated for Budget 2018 but the costing methodology did not change significantly.