Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of (a) the abolition of non-dom status and (b) increases in levels of taxation on the retention of international shipowners in the UK; what estimate she has made of the number of shipowning individuals or companies that (i) have relocated and (ii) are considering relocating as a result of these changes; and what steps the Government is taking to ensure that the UK remains an attractive base for global shipping and maritime businesses.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government’s priority is improving the UK’s competitiveness internationally and securing economic growth. The reforms to the tax treatment of non-domiciled individuals have been specifically designed to make the UK competitive, with a modern, simple tax regime that is also fair. The reforms establish a tax regime for new residents which is more attractive to new arrivals than the current rules.
The introduction of a residence-based tax system is expected to raise £39.5bn by 2030-31 (as costed by the OBR last autumn), and the OBR have said that there is no firm evidence to change the estimated impact of the reforms on migration. As set out at Budget 2025, the Chancellor has been clear that she will continue to assess the regime to ensure it strikes the right balance, including on competitiveness.
The Government published a Tax Information and Impact Note for this policy on 30 October 2024, which can be found here: https://www.gov.uk/government/publications/tax-changes-for-non-uk-domiciled-individuals/reforming-the-taxation-of-non-uk-domiciled-individuals
Regarding global shipping and maritime businesses, the Government is maintaining the Tonnage Tax regime, introduced in 2000 to improve the competitiveness of the UK’s shipping industry. This is designed to make it easier for shipping companies to move to the UK and ensures they are not disadvantaged compared with firms operating in other countries.
Asked by: Roz Savage (Liberal Democrat - South Cotswolds)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential cumulative impact of business rates, minimum wage increases, VAT, energy costs and alcohol duty on the viability of small and independently owned pubs.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government recognises the important contribution that small and independently owned pubs make to local communities, the high street and the wider economy. The potential impacts of changes on this sector are carefully considered as part of policy development.
Where changes are made, relevant impact notes and assessments are published at fiscal events and otherwise as necessary, in line with the Government’s usual practice. The Treasury also engages regularly with the pub and wider hospitality sector to understand the challenges they face.
The Government continues to provide targeted support to the pub sector through the tax system and other policies, and keeps all areas of the tax system under review, with future decisions taken at fiscal events under the normal process.
Asked by: Liz Jarvis (Liberal Democrat - Eastleigh)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of Making Tax Digital on the childminding sector.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The government has worked extensively with taxpayers, representative bodies and software developers to ensure Making Tax Digital (MTD) for income tax works well for businesses of all types and sizes.
MTD will help businesses and landlords keep on top of their tax affairs. It places small businesses on a more digital footing, with digital tools helping to reduce errors and making annual tax returns easier.
The government has worked with the software industry to ensure a wide range of options are available to suit different needs and budgets, including low cost and free software supporting those with the simplest affairs. Many products are designed for users who manage their own tax affairs or those new to digital tools.
As with other businesses, MTD will allow childminders to keep better track of their finances, helping their businesses to grow. Childminders moving to MTD for income tax can continue to claim tax relief for household costs, wear and tear of household items and furniture, and food and drink, by deducting actual business costs. This ensures childminders receive tax relief for all of the costs that they incur in relation to their childminding business.
Asked by: James McMurdock (Independent - South Basildon and East Thurrock)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has made an assessment of the potential impact of the tax treatment of the State Pension and Pension Credit on the relative incomes of pensioners.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
The Government is committed to making sure older people can live with the dignity and respect they deserve in retirement. The State Pension will remain the foundation of retirement income. In line with the Government’s commitment to the Triple Lock for the duration of this parliament, over 12 million pensioners will benefit from a 4.8% increase to their basic or new State Pension in April 2026, worth up to £575 a year. This follows a substantial increase in 2025/26, when those on the full new State Pension received a £360 boost.
The Pension Credit Standard Minimum Guarantee will also increase by 4.8% in April 2026, from £227.10 to £238 a week for single pensioners and from £346.60 to £363.25 for couples, protecting the poorest pensioners. Pension Credit is not subject to income tax.
Pension income, whether State or occupational, is a form of income like earnings and, as such, is taxable, subject to any personal tax allowances. The vast majority of pensioners paid tax under the previous Government, with 8.3 million taxpayers over State Pension age in 2024/2025.
Asked by: Julia Lopez (Conservative - Hornchurch and Upminster)
Question to the Department for Science, Innovation & Technology:
To ask the Secretary of State for Science, Innovation and Technology, what discussions she has had with Cabinet colleagues on the impact of (a) VAT and (b) other taxation on the viability of the life sciences sector.
Answered by Kanishka Narayan - Parliamentary Under Secretary of State (Department for Science, Innovation and Technology)
The Secretary of State has regular engagement with relevant colleagues on the UK business environment for life sciences sector, to drive the growth of the sector and support the delivery of the Life Sciences Sector Plan.
Asked by: Patrick Hurley (Labour - Southport)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential merits of excluding the state pension as a form of taxable income.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
Exempting the State Pension from income tax entirely would reduce tax receipts substantially undermining the public services we all rely on – especially the NHS.
However, I can confirm that those whose sole income is the basic and full new State Pension, without any increments, will not pay any income tax this tax year or next.
Furthermore, the Chancellor has said that those whose only income is the basic or new State Pension without any increments will not have to pay income tax over this Parliament.
The Government will set out more details in due course.
Asked by: Joe Robertson (Conservative - Isle of Wight East)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what assessment her Department has made of the extent to which business rates relief and other fiscal support provided to Heathrow and Gatwick is available to regional airports; and what steps she is taking to ensure regional airports are not placed at a competitive disadvantage.
Answered by Keir Mather - Parliamentary Under-Secretary (Department for Transport)
The UK aviation market operates predominantly in the private sector, however this government recognises the crucial role regional airports play in supporting thousands of local jobs, connecting communities to global opportunities, and strengthening social and economic ties across the four nations.
My department regularly engages with regional airports including through the Aviation Council, which includes a Regional Connectivity Working Group chaired by industry.
At the Budget, the Government announced a £4.3bn business rates support package. This includes a redesigned transitional relief scheme worth £3.2 billion to provide more generous support for those paying higher tax rates (such as the new high-value multiplier), including airports.
Asked by: Julia Lopez (Conservative - Hornchurch and Upminster)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has directed HMRC to review the application of VAT upon medicines supplied free-of-charge via EAMS and other compassionate access schemes.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
VAT is the UK’s second largest tax, forecast to raise £180 billion in 2025/26. Taxation is a vital source of revenue which helps to fund public services.
The Early Access to Medicines Scheme (EAMS) allows patients access to free medicines for life threatening conditions before receiving full NHS approval.
Under UK VAT law, some transactions where no money changes hands are treated as if a supply has been made – these are called deemed supplies. This is to keep the system fair. If a business has reclaimed VAT on costs (like making or importing goods), it should not avoid accounting VAT when those goods leave the business for free.
Whether VAT applies to medicines or treatments provided for free under the EAMS will depend on the precise facts of the case. In certain circumstances the giving of goods away for free can be outside the scope of VAT. Where the supply is within the scope of VAT a relief may apply, meaning the supply can be made VAT free.
Asked by: Ian Sollom (Liberal Democrat - St Neots and Mid Cambridgeshire)
Question to the Home Office:
To ask the Secretary of State for the Home Department, whether pensions income that is not eligible for taxation in the UK due to the UK and Hong Kong Tax Treaty will count towards the proposed £12,570 personal income threshold for British National (Overseas) visa holders wanting to acquire permanent residence.
Answered by Mike Tapp - Parliamentary Under-Secretary (Home Office)
The earned settlement model, proposed in ’A Fairer Pathway to Settlement’, is currently subject to a public consultation, running until 12 February 2026.
The Government remains steadfast in its support for members of the Hong Kong community in the UK. BN(O) visa holders will attract a five-year reduction in the qualifying period for settlement, meaning they will continue to be able to settle in the UK after five years’ residence, subject to meeting the mandatory requirements.
The consultation seeks views from Hong Kongers on the proposals, including whether there should be exemptions from the mandatory economic contribution.
Details of mandatory requirements, including those relating to personal income threshold, will be finalised following the close of that consultation. In the meantime, the current rules for settlement under the BN(O) route will continue to apply.
Asked by: Ian Sollom (Liberal Democrat - St Neots and Mid Cambridgeshire)
Question to the Home Office:
To ask the Secretary of State for the Home Department, whether pensions income that is not eligible for taxation in the UK due to the UK and Hong Kong Tax Treaty will count towards the proposed £12,570 personal income threshold for British National (Overseas) visa holders wanting to acquire permanent residence.
Answered by Mike Tapp - Parliamentary Under-Secretary (Home Office)
The earned settlement model, proposed in ’A Fairer Pathway to Settlement’, is currently subject to a public consultation, running until 12 February 2026.
The Government remains steadfast in its support for members of the Hong Kong community in the UK. BN(O) visa holders will attract a five-year reduction in the qualifying period for settlement, meaning they will continue to be able to settle in the UK after five years’ residence, subject to meeting the mandatory requirements.
The consultation seeks views from Hong Kongers on the proposals, including whether there should be exemptions from the mandatory economic contribution.
Details of mandatory requirements, including those relating to personal income threshold, will be finalised following the close of that consultation. In the meantime, the current rules for settlement under the BN(O) route will continue to apply.