Asked by: Lord Sikka (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government which piece of legislation originally granted exemptions to the Duchy of Cornwall from paying corporation tax and capital gains tax; and what is the monetary value of these exemptions for the last 10 years.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Duchy of Cornwall is not liable to pay corporation tax as it is a Crown body subject to Crown exemption. This is a matter of common law.
The Prince of Wales receives the annual income generated by the Duchy of Cornwall, but is not entitled to the capital of the Duchy. While the Crown exemption applies to income received from the Duchy, the Prince of Wales pays tax voluntarily on his income received from the Duchy of Cornwall to the extent that is not used to meet official expenditure. The Prince of Wales is otherwise subject to taxation in the normal way. These arrangements are set out in The Memorandum of Understanding on Royal Taxation, which is available at www.gov.uk/government/publications/memorandum-of-understanding-on-royal-taxation-2023
Asked by: Lord Sikka (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government how much uncollected tax they have written off in each of the past 10 years.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Financial Year | Write-offs | Remissions | Total Losses |
2023-24 | £5,049m | £567m | £5,616m |
2022-23 | £3,154m | £596m | £3,750m |
2021-22 | £1,892m | £515m | £2,407m |
2020-21 | £1,517m | £445m | £1,962m |
2019-20 | £3,538m | £546m | £4,084m |
2018-19 | £3,669m | £794m | £4,463m |
2017-18 | £3,370m | £367m | £3,737m |
2016-17 | £3,564m | £303m | £3,867m |
2015-16 | £3,171m | £604m | £3,775m |
2014-15 | £3,865m | £372m | £4,237m |
HMRC revenue losses are made up of remissions and write-offs. Remissions are debts capable of recovery, but HMRC has decided not to pursue the liability on the grounds of value for money. Write-offs are debts that are considered to be irrecoverable because there is no practical means for pursuing the liability.
Asked by: Lord Sikka (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government how many UK adults are not liable to pay income tax because their total income is less than the tax-free personal allowance.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Data on the number of UK adults who are not liable to pay income tax are not currently held or published.
HMRC publishes projections for the total number of Income taxpayers per year in table 2.1 of the Income Tax liability statistics. Current projections show there to be 37.4 million Income taxpayers in the UK in 2024-25.
The Office for National Statistics publishes projections for the total number of adults in the UK by age in their population projections. They currently estimate there to be 55.2 million individuals aged over 18 in the UK in 2024-25.
Asked by: Lord Sikka (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the impact of quantitative tightening on the interest rate yield curve.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Bank of England has operational independence from the government to carry out its statutory responsibilities for monetary policy and financial stability. Monetary policy, including quantitative easing, is the responsibility of the independent Monetary Policy Committee at the Bank of England.
The separation of fiscal and monetary policy is a key feature of the UK’s economic framework, it is in line with international standards and essential for the effective delivery of monetary policy, so the government does not comment on the conduct or effectiveness of monetary policy.
Since October 2022, HM Treasury has transferred £85.9bn to the Bank of England to cover losses arising from the indemnity of the Asset Purchase Facility, the vehicle used to implement quantitative easing. This covers losses incurred from net interest costs and the sale and redemption of bonds as the portfolio is unwound.
Data on these cash transfers between HM Treasury and the Bank of England are made publicly available by the Office for National Statistics (ONS) in its monthly Public Sector Finances publication. The data are available in the ONS data series ID MF7A in worksheet PSA9B [1].
Asked by: Lord Sikka (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what losses or profits have been made from the sale of government gilts and corporate bonds originally acquired through the quantitative easing programme.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Bank of England has operational independence from the government to carry out its statutory responsibilities for monetary policy and financial stability. Monetary policy, including quantitative easing, is the responsibility of the independent Monetary Policy Committee at the Bank of England.
The separation of fiscal and monetary policy is a key feature of the UK’s economic framework, it is in line with international standards and essential for the effective delivery of monetary policy, so the government does not comment on the conduct or effectiveness of monetary policy.
Since October 2022, HM Treasury has transferred £85.9bn to the Bank of England to cover losses arising from the indemnity of the Asset Purchase Facility, the vehicle used to implement quantitative easing. This covers losses incurred from net interest costs and the sale and redemption of bonds as the portfolio is unwound.
Data on these cash transfers between HM Treasury and the Bank of England are made publicly available by the Office for National Statistics (ONS) in its monthly Public Sector Finances publication. The data are available in the ONS data series ID MF7A in worksheet PSA9B [1].
Asked by: Lord Sikka (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, further to the Written Answer by Baroness Vere of Norbiton on 5 February 2024 (HL1819), when Dame Linda Dobbs's review began; what period it covers; when the review was originally scheduled to be completed; when the review is now expected to be completed; when an interim report was published; and how many victims of fraud at HBOS and Lloyds Banking Group have given evidence to it.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Dame Linda Dobbs Review began in April 2017. The review was originally scheduled to be completed by the end of 2020. It is now expected to be completed in 2025.
The review, and appointment of Dame Linda Dobbs, has been instigated by Lloyds Banking Group. No interim report is planned and the number of victims giving evidence has not been made public.
The review has stated it will cover the period from the acquisition of HBOS in 2009 to 2017, and examine relevant evidence from before 2009 to assess what ought to have been known at the time of the HBOS acquisition.
Once completed, the review’s findings will be shared with the Financial Conduct Authority (FCA), which will then consider what action is appropriate to take.
Asked by: Lord Sikka (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, further to the Written Answer by Baroness Vere of Norbiton on 5 February 2021 (HL1819), whether they will provide a reason why the Financial Conduct Authority has not launched an independent inquiry into banking fraud at HBOS and Lloyds Banking Group.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government regularly engages with a range of stakeholders across the financial services landscape, and it is important that communication can take place in a free and frank way.
The matter of HBOS Reading is first and foremost for the Financial Conduct Authority as the independent non-governmental body responsible for regulating and supervising the financial services industry, and is subject to an ongoing review being led by Dame Linda Dobbs DBE.
The most appropriate form of investigation is a matter for the Financial Conduct Authority to determine. However, the Government notes that the regulator has already undertaken an investigation into this matter, in addition to the Cranston Review and, latterly, the work of Sir David Foskett to ensure adequate compensation. The Financial Conduct Authority will receive a copy of the Dobbs Report in due course and will be able to consider whether any further action is appropriate.
Asked by: Lord Sikka (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether they will publish any correspondence they hold with Lloyds Bank related to frauds at the Reading branch of HBOS.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government regularly engages with a range of stakeholders across the financial services landscape, and it is important that communication can take place in a free and frank way.
The matter of HBOS Reading is first and foremost for the Financial Conduct Authority as the independent non-governmental body responsible for regulating and supervising the financial services industry, and is subject to an ongoing review being led by Dame Linda Dobbs DBE.
The most appropriate form of investigation is a matter for the Financial Conduct Authority to determine. However, the Government notes that the regulator has already undertaken an investigation into this matter, in addition to the Cranston Review and, latterly, the work of Sir David Foskett to ensure adequate compensation. The Financial Conduct Authority will receive a copy of the Dobbs Report in due course and will be able to consider whether any further action is appropriate.
Asked by: Lord Sikka (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what is their assessment of the link between stamp duty rates and house prices.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Stamp Duty Land Tax (SDLT) is a transaction tax paid on the purchase of the property in England or Northern Ireland. A range of complex factors influence house prices in the UK.
On SDLT, the Office for Budget Responsibility publishes its assumptions on the relationship between SDLT and property prices.
Asked by: Lord Sikka (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether the recommendations of Lord Myners published in March 2001 in Institutional Investment in the United Kingdom: A Review will form part of their growth and productivity plans.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Institutional investment is vital for growth, and investment in starts ups and scale ups is an important part of that. The Myners Report contains valuable insights that are still valuable today. However, the pensions market in particular is now significantly different than it was in 2001. The Chancellor has launched a landmark pensions review which will focus on increasing investment, improving saver returns and tackling waste in the pensions system. This is alongside other major initiatives to drive economic growth such as the National Wealth Fund to mobilise private capital and institutional investment.