Asked by: Ellie Chowns (Green Party - North Herefordshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the assessment of the number of estates impacted by the changes to Inheritance Tax on unused pension funds and death benefits (published in the relevant Policy Paper on 21 July 2025) took into consideration the increase in asset values over the coming years.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Most unused pension funds and death benefits payable from a pension will form part of a person’s estate for inheritance tax purposes from 6 April 2027. This removes distortions resulting from changes that have been made to pensions tax policy over the last decade, which have led to some pensions being openly used and marketed as a tax planning vehicle to transfer wealth, rather than as a way to fund retirement. These reforms also remove inconsistencies in the inheritance tax treatment of different types of pensions
The Government will continue to incentivise pension savings for their intended purpose of funding retirement, with ongoing tax reliefs on both contributions into pensions and on the growth of funds held within a pension scheme. Pensions continue to benefit from very significant tax benefits, with gross income tax and National Insurance contributions relief costing £78.2 billion in 2023-24. It is therefore crucial to ensure that tax reliefs on pensions are being used for their intended purpose – to encourage saving for retirement and later life – rather than for passing on wealth free of inheritance tax
Estates will continue to benefit from the normal nil-rate bands, reliefs, and exemptions available. For example, the nil-rate bands mean an estate can pass on up to £1 million with no inheritance tax liability and the general rules mean any transfers, including the payment of death benefits, to a spouse or civil partner are fully exempt from inheritance tax. More than 90 per cent of UK estates will continue to have no inheritance tax liability in 2030-31 following these changes and the reforms will only affect a minority of those with inheritable pension wealth
As is standard practice, the costing and the assessment of the number of estates expected to be impacted by the reforms take account of the forecasts for changes in asset values. For example, pension wealth is grown over time using the equity prices determinant from the Office for Budget Responsibility’s (OBR) economic forecast. The OBR published detailed information on 30 January 2025 and this is available at https://obr.uk/docs/dlm_uploads/IHT-on-pensions-supplementary-release-Jan-2025.pdf.
Asked by: Ellie Chowns (Green Party - North Herefordshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential risk that changes to Inheritance Tax on unused pension funds and death benefits could discourage private savings for pensions.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Most unused pension funds and death benefits payable from a pension will form part of a person’s estate for inheritance tax purposes from 6 April 2027. This removes distortions resulting from changes that have been made to pensions tax policy over the last decade, which have led to some pensions being openly used and marketed as a tax planning vehicle to transfer wealth, rather than as a way to fund retirement. These reforms also remove inconsistencies in the inheritance tax treatment of different types of pensions
The Government will continue to incentivise pension savings for their intended purpose of funding retirement, with ongoing tax reliefs on both contributions into pensions and on the growth of funds held within a pension scheme. Pensions continue to benefit from very significant tax benefits, with gross income tax and National Insurance contributions relief costing £78.2 billion in 2023-24. It is therefore crucial to ensure that tax reliefs on pensions are being used for their intended purpose – to encourage saving for retirement and later life – rather than for passing on wealth free of inheritance tax
Estates will continue to benefit from the normal nil-rate bands, reliefs, and exemptions available. For example, the nil-rate bands mean an estate can pass on up to £1 million with no inheritance tax liability and the general rules mean any transfers, including the payment of death benefits, to a spouse or civil partner are fully exempt from inheritance tax. More than 90 per cent of UK estates will continue to have no inheritance tax liability in 2030-31 following these changes and the reforms will only affect a minority of those with inheritable pension wealth
As is standard practice, the costing and the assessment of the number of estates expected to be impacted by the reforms take account of the forecasts for changes in asset values. For example, pension wealth is grown over time using the equity prices determinant from the Office for Budget Responsibility’s (OBR) economic forecast. The OBR published detailed information on 30 January 2025 and this is available at https://obr.uk/docs/dlm_uploads/IHT-on-pensions-supplementary-release-Jan-2025.pdf.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of changes to business rates for the Channel Tunnel from 2025-26 to 2026-27 as a consequence of the (i) business rate revaluation and (ii) surcharge on Rateable Values above £500,000; and whether she has made an assessment of the potential impact of those changes on rail investment in Channel Tunnel services.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government cannot comment on the bills of individual ratepayers.
At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic.
While rateable values have increased, the multipliers rates have decreased, meaning, from April, all ratepayers will face a lower multiplier than they do now, including those paying the high-value multiplier. The Government recognises that this does not necessarily mean a lower bill for everyone which is why, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation.
This support package includes a redesigned transitional relief scheme, which caps bill increases over the next 3 years. Compared to the 2023 transitional relief scheme, the redesigned scheme will provide more support for properties paying higher tax rates (such as the new high-value multiplier), including airports, hotels and key Industrial Strategy properties, who are facing large increases and are important for growth in the UK.
Asked by: Ellie Chowns (Green Party - North Herefordshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what consideration has been given to the potential risk that the Finance Bill's requirement for conveyancers submitting Stamp Duty Land Tax returns on behalf of clients to register as 'tax advisers' may mislead consumers to assume their conveyancer or solicitor is providing full tax advice, which they are not authorised to give.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Guidance on whether you need to register as a tax adviser is available here: https://www.gov.uk/guidance/check-if-and-when-you-need-to-register-as-a-tax-adviser-with-hmrc
Asked by: Kim Johnson (Labour - Liverpool Riverside)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she will take to address the tax disparity that sees employing hairdressing salons pay 123% more tax than self-employed hairdressing salons for the same turnover.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government recognises the vital role that hairdressing salons play in communities and the wider economy.
An individual's employment status is determined by the facts and circumstances of the engagement between the worker and engager. This is based on case law. The Government recognises that firms in the hair and beauty sector operate under different business models.
The Government has taken steps to support small businesses. To protect the smallest businesses from changes to employer National Insurance Contributions (NICs) made at Autumn Budget 2024, the Government increased the Employment Allowance from £5,000 to £10,500. This means that this year, 865,000 employers will pay no NICs at all, and more than half of all employers will either gain or will see no change.
The Government is also supporting small businesses to grow. At Budget, the Government announced the extension of Small Business Rates Relief (SBRR) so that businesses opening second premises can retain their SBRR for three years, tripling the current allowance.
The Government keeps all areas of the tax system under review. Any changes to the tax system are announced as part of the annual Budget process.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the answer of 20 November 2025 to Question 91460 on Airports: Business Rates, if she will publish the revised guidance alongside the draft rating list.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Valuation Office Agency's guidance will be published when the Rating List is compiled on 1 April 2026.
Asked by: Scott Arthur (Labour - Edinburgh South West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an estimate of the potential impact on the revenue differential to the Treasury if Class 1 National Insurance Contributions calculations matched those of income tax.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
This would be a significant change, as National Insurance contributions (NICs) and Income Tax work quite differently at present.
NICs are charged on earnings on a per-employment, per-pay period basis, whereas Income Tax is an annual tax, and takes into account an individual’s total, cumulative earnings over the year. NICs also come with specific benefits e.g. State Pension, Jobseeker’s Allowance (JSA), Maternity Allowance, and Bereavement benefits. This is in line with NICs’ role as a social security contribution, into which contributions are made from people’s earnings while in work to support them when they are out of work. NICs are currently not payable by those over State Pension age. As such, amalgamating NICs into, or even bringing them closer into line with, income tax would come with major transitional costs and considerations
The Office of Tax Simplification (OTS) considered this in 2016 in its report on 'Closer alignment of Income Tax and National Insurance', which sets out their analysis on the range of challenges that would need to be taken into consideration before proceeding with such a radical reform as well as indications of potential winners and losers from closer alignment.
Asked by: Scott Arthur (Labour - Edinburgh South West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of aligning National Insurance Contributions (NICs) earnings periods with those of income tax.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
This would be a significant change, as National Insurance contributions (NICs) and Income Tax work quite differently at present.
NICs are charged on earnings on a per-employment, per-pay period basis, whereas Income Tax is an annual tax, and takes into account an individual’s total, cumulative earnings over the year. NICs also come with specific benefits e.g. State Pension, Jobseeker’s Allowance (JSA), Maternity Allowance, and Bereavement benefits. This is in line with NICs’ role as a social security contribution, into which contributions are made from people’s earnings while in work to support them when they are out of work. NICs are currently not payable by those over State Pension age. As such, amalgamating NICs into, or even bringing them closer into line with, income tax would come with major transitional costs and considerations
The Office of Tax Simplification (OTS) considered this in 2016 in its report on 'Closer alignment of Income Tax and National Insurance', which sets out their analysis on the range of challenges that would need to be taken into consideration before proceeding with such a radical reform as well as indications of potential winners and losers from closer alignment.
Asked by: Ellie Chowns (Green Party - North Herefordshire)
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 Finance Bill's requirement for conveyancers submitting Stamp Duty Land Tax returns on behalf of clients to register as 'tax advisers' on costs for consumers.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The government has consulted extensively with stakeholders about plans to require the registration of tax advisers who interact with HMRC on behalf of their clients.
This includes the 2024 consultation ‘Raising standards in the tax advice market: strengthening the regulatory framework and improving registration’ and a technical consultation on draft legislation published in summer 2025.
HMRC will continue to work with the industry ahead of implementation and consider concerns raised by stakeholder groups, including conveyancers.
HMRC has released a tax information and impact note on GOV.UK. The note details how the measure is expected to affect businesses that provide professional tax services and interact with HMRC on behalf of their clients.
Asked by: Luke Evans (Conservative - Hinckley and Bosworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will conduct an assessment of national investment strategies in [i] skills [ii] transport and [iii] infrastructure for Leicestershire, Leicester and Rutland to ensure comparability with mayoral combined authorities.
Answered by James Murray - Chief Secretary to the Treasury
The government recognises the importance of ensuring that all areas have strategies in place, and can drive forward improvements in transport, skills and infrastructure. Areas not part of a combined authority still receive investment in skills, transport and infrastructure, and are required to produce the relevant strategies.
In addition, for those areas which want greater devolution without being part of a Combined Authority, the government has invited them to bring forward with their neighbours an expression of interest for a Foundation Strategic Authority.