Asked by: David Simmonds (Conservative - Ruislip, Northwood and Pinner)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, whether his Department has issued guidance to local authorities on the (a) civil and (b) criminal penalties for avoidance of paying the second homes council tax premium.
Answered by Alison McGovern - Minister of State (Housing, Communities and Local Government)
Councils have a range of powers available to them to recover any type of unpaid council tax, including council tax premiums. The government has recently consulted on modernising and improving the administration of council tax which seeks views on how council tax is collected and enforced. The government will publish its response to the consultation in due course.
Asked by: Victoria Collins (Liberal Democrat - Harpenden and Berkhamsted)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will take steps to ensure that HMRC issues closure notices showing no adjustment to tax returns for users of the Horizon loan scheme.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
As a minister I cannot comment on any individual or identifiable businesses and their tax affairs. HM Revenue and Customs (HMRC) should always treat taxpayers sensitively and fairly in accordance with the HMRC Charter.
To ensure fairness, HMRC applies the law in accordance with its published Litigation and Settlement Strategy (LSS). This ensures every taxpayer, no matter who they are, pays the tax due under the law.
Asked by: Victoria Collins (Liberal Democrat - Harpenden and Berkhamsted)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, for what reason HMRC has treated the (a) Palmrock and (b) Horizon loan schemes differently in relation to the application of PAYE credits.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
As a minister I cannot comment on any individual or identifiable businesses and their tax affairs. HM Revenue and Customs (HMRC) should always treat taxpayers sensitively and fairly in accordance with the HMRC Charter.
To ensure fairness, HMRC applies the law in accordance with its published Litigation and Settlement Strategy (LSS). This ensures every taxpayer, no matter who they are, pays the tax due under the law.
Asked by: Charlie Dewhirst (Conservative - Bridlington and The Wolds)
Question to the Cabinet Office:
To ask the Minister for the Cabinet Office, whether the Public Sector Fraud Authority has issued recent guidance to local billing authorities on council tax (a) avoidance and (b) evasion in relation to the second homes council tax premium.
Answered by Josh Simons - Parliamentary Secretary (Cabinet Office)
Guidance in relation to the payment and billing of council tax is developed and issued by the Ministry of Housing, Communities and Local Government to local authorities.
However, the National Fraud Initiative (NFI), as part of the Public Sector Fraud Authority (PSFA), works closely with local authorities to help them identify and prevent fraud.
As part of this, the NFI is currently collaborating with local authorities to understand the fraud risks related to council tax second home premiums. The NFI will use that insight to inform options, such as a data matching pilot, to detect and prevent fraud in this area.
This collaboration is also what has allowed the removal of fraudsters from social housing properties, ensuring they go to those families in genuine need, and cracking down on blue badge fraud - of which 22,000 fraudulent permits were cancelled in the last year alone.
Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has assessed the potential merits of making (a) directors and (b) owners of (i) dissolved and (ii) all other companies personally liable for the underpayment of taxes arising from the adaptation of tax (A) avoidance and (B) evasion schemes that those companies have (1) promoted and (2) made earnings from.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government is committed to closing the tax gap and cracking down on avoidance and evasion.
The Government is determined to do more to close in on promoters of marketed tax avoidance and recently consulted on a package of measures to strengthen HMRC’s powers to tackle them.
HMRC also carries out civil and criminal investigations into suspected tax evasion, including where there is suspicion of third parties being involved in fraud or evasions. All investigations are assessed to determine which action would be most appropriate.
It is a fundamental principle of the tax system that taxpayers are responsible for their own tax affairs. However, HMRC does levy penalties on promoters of tax avoidance and uses the Joint and Several Liability legislation to seek to recover penalty liabilities from appropriate individuals: including directors; shadow directors; or participators when the company becomes insolvent.
Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when she plans to introduce a universal stop notice for tax avoidance schemes.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government recognises the damage caused to the tax system by those that promote tax avoidance schemes. It takes action to prevent that damage, for example by publishing details of schemes and promoters to help customers to steer clear of or otherwise exit such schemes.
The Government is determined to do more to close in on promoters of marketed tax avoidance and recently consulted on a package of measures to strengthen existing powers. This included a proposal to introduce a Universal Stop Notice. It will respond to this consultation in due course.
Asked by: Angus MacDonald (Liberal Democrat - Inverness, Skye and West Ross-shire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has had recent discussions with the Secretary of State for Culture, Media and Sport on the potential lessons that could be learned from HMRC’s treatment of professional footballers affected by investment fraud for wider cases mis-selling of tax avoidance schemes.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC works closely with partners across the football sector to deliver educational messages to support players and their agents in getting things right first time.
HMRC recognises the damage caused to the tax system by those that promote tax avoidance schemes. It takes action to prevent that damage, for example by publishing details of schemes and promoters to help customers to steer clear of or otherwise exit such schemes.
The Government is determined to do more to close in on promoters of marketed tax avoidance and recently consulted on a package of measures to strengthen HMRC’s powers to tackle them.
HMRC also recognises that dealing with an enquiry and a tax liability can be stressful. HMRC is committed to supporting taxpayers who need extra support and offer ‘Time to Pay’ instalment arrangements where appropriate.
Asked by: Nadia Whittome (Labour - Nottingham East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the Loan Charge on the mental health of those affected; and if she will take steps to prevent such harm.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government commissioned an independent review of the loan charge to help bring the matter to a close for those affected whilst ensuring fairness for all taxpayers. The Government will respond by Autumn Budget 2025.
The independent review was led by Ray McCann whose name was suggested by one of the Loan Charge campaigners. The terms of reference made it clear that he would be supported by a team of officials based outside of HM Treasury and HMRC, none of whom had previously worked on this policy area. Mr McCann was responsible for deciding how to conduct the review and will also have the final say on what is included in his report.
HMRC has guidance and training in place for customer advisors on identifying people who need extra support and providing reasonable adjustments to meet their needs. HMRC can offer support to individuals with disguised remuneration liabilities through manageable payment plans and its well-established Extra Support Service.
Where appropriate, HMRC will signpost people to relevant voluntary and community organisations and where needed, to a dedicated Samaritans helpline for specialist emotional support where people can talk though any concerns or worries.
Asked by: Nadia Whittome (Labour - Nottingham East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to ensure that the review of the Loan Charge is (a) independent, (b) transparent, (c) robust and (d) free from interference.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government commissioned an independent review of the loan charge to help bring the matter to a close for those affected whilst ensuring fairness for all taxpayers. The Government will respond by Autumn Budget 2025.
The independent review was led by Ray McCann whose name was suggested by one of the Loan Charge campaigners. The terms of reference made it clear that he would be supported by a team of officials based outside of HM Treasury and HMRC, none of whom had previously worked on this policy area. Mr McCann was responsible for deciding how to conduct the review and will also have the final say on what is included in his report.
HMRC has guidance and training in place for customer advisors on identifying people who need extra support and providing reasonable adjustments to meet their needs. HMRC can offer support to individuals with disguised remuneration liabilities through manageable payment plans and its well-established Extra Support Service.
Where appropriate, HMRC will signpost people to relevant voluntary and community organisations and where needed, to a dedicated Samaritans helpline for specialist emotional support where people can talk though any concerns or worries.
Asked by: Euan Stainbank (Labour - Falkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the effectiveness of the application of the Litigation and Settlement Strategy on settlements made following disguised renumeration schemes.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government commissioned an independent review of the loan charge to help bring the matter to a close for those affected whilst ensuring fairness for all taxpayers. The Government will respond by Autumn Budget 2025.
The Litigation and Settlement Strategy (LSS) ensures that HMRC applies the law fairly and consistently. The LSS applies as much to the resolution of a dispute with a multinational corporation as it does to small business customers or individuals. This ensures every taxpayer, no matter who they are, pays the tax due under the law.
Central to the LSS is that HMRC will not settle a dispute by agreement for an amount which is less than it would reasonably expect to obtain from litigation.