Asked by: Angus MacDonald (Liberal Democrat - Inverness, Skye and West Ross-shire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what comparative assessment her Department has made of the impact of the High Income Child Benefit Charge threshold on single-earner and two-earner households.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The High Income Child Benefit Charge (HICBC) applies to Child Benefit recipients, or their partner, who has an adjusted net income of £60,000 or more. An individual’s adjusted net income is their total taxable income before any Personal Allowances and less certain tax reliefs.
The HICBC threshold was increased to £60,000 in April 2024, which took 170,000 families out of paying this tax charge in 2024/25. The point at which Child Benefit is fully withdrawn was also raised to £80,000. The HICBC threshold was £50,000 prior to 6 April 2024.
The adjusted net income threshold of £60,000 ensures the Government supports the majority of Child Benefit claimants, whilst keeping welfare expenditure sustainable.
HICBC is calculated on an individual rather than a household basis, in line with other income tax policy. In the Autumn Budget 2024, the Chancellor announced that there are no current plans to change to a system where HICBC is calculated on a household income basis, as it is estimated this would cost up to £1.4 billion or would require some families currently in receipt of Child Benefit and outside the scope of the tax charge to lose out.
As with all elements of tax policy the Government keeps HICBC under review as part of its Budget process.
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 plans to review the income threshold for the High Income Child Benefit Charge.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The High Income Child Benefit Charge (HICBC) applies to Child Benefit recipients, or their partner, who has an adjusted net income of £60,000 or more. An individual’s adjusted net income is their total taxable income before any Personal Allowances and less certain tax reliefs.
The HICBC threshold was increased to £60,000 in April 2024, which took 170,000 families out of paying this tax charge in 2024/25. The point at which Child Benefit is fully withdrawn was also raised to £80,000. The HICBC threshold was £50,000 prior to 6 April 2024.
The adjusted net income threshold of £60,000 ensures the Government supports the majority of Child Benefit claimants, whilst keeping welfare expenditure sustainable.
HICBC is calculated on an individual rather than a household basis, in line with other income tax policy. In the Autumn Budget 2024, the Chancellor announced that there are no current plans to change to a system where HICBC is calculated on a household income basis, as it is estimated this would cost up to £1.4 billion or would require some families currently in receipt of Child Benefit and outside the scope of the tax charge to lose out.
As with all elements of tax policy the Government keeps HICBC under review as part of its Budget process.
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 her Department has made an assessment of the potential impact of the VAT registration threshold on the UK’s obligations under the Protocol on Ireland/Northern Ireland as amended by the Windsor Framework.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
VAT policy, including the VAT registration threshold, applies on a UK-wide basis and operates in Northern Ireland in line with the UK’s international obligations under the Windsor Framework.
The VAT registration threshold is consistent with the operation of the Framework.
Asked by: Angus MacDonald (Liberal Democrat - Inverness, Skye and West Ross-shire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of the VAT registration threshold on the level of recruitment of additional employees or apprentices by small businesses.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government recognises the significant contribution made by small businesses to economic growth and life in the UK. Tax rates and thresholds are one of a range of factors that affect small businesses’ decisions on growth and recruitment, alongside wider economic conditions, demand and market considerations.
There is a range of views on the VAT registration threshold. Any consideration of changes to the threshold would have to carefully balance potential impacts on small businesses, the economy as a whole, and tax revenues. The Chancellor makes decisions on tax policy at fiscal events in the context of the overall public finances.
Asked by: Angus MacDonald (Liberal Democrat - Inverness, Skye and West Ross-shire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of VAT registration threshold on incentives for small businesses to increase their turnover.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government recognises the significant contribution made by small businesses to economic growth and life in the UK. Tax rates and thresholds are one of a range of factors that affect small businesses’ decisions on growth and recruitment, alongside wider economic conditions, demand and market considerations.
There is a range of views on the VAT registration threshold. Any consideration of changes to the threshold would have to carefully balance potential impacts on small businesses, the economy as a whole, and tax revenues. The Chancellor makes decisions on tax policy at fiscal events in the context of the overall public finances.
Asked by: Angus MacDonald (Liberal Democrat - Inverness, Skye and West Ross-shire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what data her Department has used to estimate the potential behavioural impacts of changes to the VAT registration threshold on small businesses.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government recognises the significant contribution made by small businesses to economic growth and life in the UK. Tax rates and thresholds are one of a range of factors that affect small businesses’ decisions on growth and recruitment, alongside wider economic conditions, demand and market considerations.
There is a range of views on the VAT registration threshold. Any consideration of changes to the threshold would have to carefully balance potential impacts on small businesses, the economy as a whole, and tax revenues. The Chancellor makes decisions on tax policy at fiscal events in the context of the overall public finances.
Asked by: Angus MacDonald (Liberal Democrat - Inverness, Skye and West Ross-shire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of raising the VAT registration threshold on the public purse.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government recognises the significant contribution made by small businesses to economic growth and life in the UK. Tax rates and thresholds are one of a range of factors that affect small businesses’ decisions on growth and recruitment, alongside wider economic conditions, demand and market considerations.
There is a range of views on the VAT registration threshold. Any consideration of changes to the threshold would have to carefully balance potential impacts on small businesses, the economy as a whole, and tax revenues. The Chancellor makes decisions on tax policy at fiscal events in the context of the overall public finances.
Asked by: Angus MacDonald (Liberal Democrat - Inverness, Skye and West Ross-shire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what role Ministers and officials had in setting the scope and terms of reference for the review of Loan Charge settlement arrangements conducted by Ray McCann.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Review’s Terms of Reference were drafted by the independent reviewer and then agreed with Ministers.
Ministers received advice from officials in line with normal processes. This ensured that the Terms of Reference met legal requirements and the objectives agreed between Ministers and the reviewer.
Asked by: Angus MacDonald (Liberal Democrat - Inverness, Skye and West Ross-shire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 23 June 2025 to Question 60696, what assessment she has made of the potential implications for her policies on the independence of the Independent Review of the Loan Charge of comments made by Ray McCann in August 2019 on his level of independence.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
At Autumn Budget 2024, the Government committed to holding an independent review of the Loan Charge to bring this matter to a close for those affected. The review has now concluded and the Government will respond at Budget.
Ray McCann was suggested as a potential reviewer by one of the Loan Charge campaigners. During the review, Mr McCann was supported by a team of officials who had not previously worked for the Treasury or HMRC. The reviewer decided how to conduct the review and had the final say on what was included in his report.
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 made an assessment of the adequacy of the transparency of letting arrangements for residential properties managed by the Crown Estate.
Answered by James Murray - Chief Secretary to the Treasury
The Crown Estate operates under the requirements set out in the Crown Estate Act 1961, including the requirement to lay in the Houses of Parliament an annual report and accounts audited by the Comptroller and Auditor General. The Comptroller and Auditor General may also carry out value for money studies of The Crown Estate under the National Audit Act 1983, and has access to Crown Estate information in the same way as they do for government departments.