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 steps her Department is taking to ensure that Scottish banknotes are treated as legal currency by businesses operating in England.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The UK is unusual in allowing several commercial banks to issue their own banknotes. As well as Bank of England issued notes, authorised banks in Scotland and Northern Ireland issue banknotes in those jurisdictions. However, it remains the individual retailer’s choice whether to accept or decline any form of payment, including cash or card, based on their consideration of factors such as customer preference and cost.
Legal tender status does not oblige businesses to accept a particular form of payment in everyday transactions. This stems from legal tender having a narrow technical meaning in UK law, specifically referring to what constitutes a valid payment of debt in court proceedings. If a debtor pays into court in legal tender, they have a good defence against a claim for non-payment.
More broadly, the Government recognises that cash continues to be used by millions of people across the UK, including those in vulnerable groups, and is committed to protecting access to cash for individuals and businesses who choose to use it. In recognition of this, the Financial Services and Markets Act 2023 introduced safeguards to protect the public's access to cash.
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 a recent assessment of the adequacy of HMRC’s procedures for (a) identifying and (b) protecting people who are victims of crime.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The government takes the issue of fraud extremely seriously, recognising its impact on businesses and taxpayers.
HMRC regularly reviews its approach to identifying and supporting customers who are victims of crime to ensure they are provided with support tailored to their individual circumstances.
HMRC is committed to fulfilling its responsibilities under the Code of Practice for Victims of Crime in England and Wales, and equivalent frameworks in Scotland and Northern Ireland, ensuring they are afforded the rights and entitlements set out in the Code.
HMRC does this by ensuring guidance and training is in place for all advisors on how to identify taxpayers who need extra support and provide reasonable adjustments to meet their needs. For example, in certain circumstances HMRC can give an extension to a deadline or spend more time on the telephone to support an individual who needs extra help. Further information on this and other reasonable adjustments can be found at: Get help from HMRC if you need extra support: Help you can get - GOV.UK.
In addition, HMRC’s Fraud Prevention Centre focuses on protecting, detecting and responding to identity-related security issues, developing this service with improvements aimed at aligning with industry best practice.
HMRC has published its commitment to supporting customers in the HMRC Charter and the principles of support for customers who need extra help.
Asked by: Angus MacDonald (Liberal Democrat - Inverness, Skye and West Ross-shire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of legislative changes to require HMRC to prioritise investigations of (a) promoters and (b) perpetrators of fraudulent schemes over investigations of (i) professional footballers, (ii) loan charge victims and (c) other individuals misled into such schemes.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC already takes action against those behind tax avoidance schemes by using a variety of legislation and tools to challenge promoters and others in the tax avoidance supply chain.
HMRC also regularly publishes information on tax avoidance schemes, those who promote them and others connected to avoidance schemes, to help customers identify, avoid, and exit them. As of 4 September 2025, HMRC has published details of more than 170 tax avoidance schemes and named more than 170 promoters on GOV.UK
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 includes proposals to:
Where individuals owe tax, HMRC seeks to take a supportive and proportionate approach to recovering the amount due, including providing extra support for individuals who need it and offering ‘Time to Pay’ instalment arrangements where appropriate.
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 recent discussions she has had with the Secretary of State for Environment, Food and Rural Affairs on the potential impact of inheritance tax changes on farm succession planning.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government believes its reforms to agricultural property relief and business property relief from 6 April 2026 get the balance right between supporting farms and businesses, and fixing the public finances. The reforms reduce the inheritance tax advantages available to owners of agricultural and business assets, but still mean those assets will be taxed at a much lower effective rate than most other assets. Despite a tough fiscal context, the Government will maintain very significant levels of relief from inheritance tax beyond what is available to others and compared to the position before 1992. Where inheritance tax is due, those liable for a charge can pay any liability on the relevant assets over 10 annual instalments, interest-free.
The Government has set out that the reforms are expected to result in up to 520 estates across the UK claiming agricultural property relief, including those also claiming business property relief, paying more inheritance tax in 2026-27. Almost three-quarters of estates claiming agricultural property relief, including those that also claim for business property relief, will not pay any more tax as a result of the changes in 2026-27, based on the latest available data.
The reforms to agricultural property relief and business property relief are forecast to raise a combined £520 million in 2029-30. The independent Office for Budget Responsibility certified this costing at Autumn Budget 2024 and it does not expect the reforms to have a significant macroeconomic impact.
The Government published a tax information and impact note on the reforms on 21 July 2025. The note explains that the measure is not expected to have a material impact on food security and it is available at www.gov.uk/government/publications/reforms-to-agricultural-property-relief-and-business-property-relief/agricultural-property-relief-and-business-property-relief-reforms.
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 changes to inheritance tax on the long-term financial viability of family farms.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government believes its reforms to agricultural property relief and business property relief from 6 April 2026 get the balance right between supporting farms and businesses, and fixing the public finances. The reforms reduce the inheritance tax advantages available to owners of agricultural and business assets, but still mean those assets will be taxed at a much lower effective rate than most other assets. Despite a tough fiscal context, the Government will maintain very significant levels of relief from inheritance tax beyond what is available to others and compared to the position before 1992. Where inheritance tax is due, those liable for a charge can pay any liability on the relevant assets over 10 annual instalments, interest-free.
The Government has set out that the reforms are expected to result in up to 520 estates across the UK claiming agricultural property relief, including those also claiming business property relief, paying more inheritance tax in 2026-27. Almost three-quarters of estates claiming agricultural property relief, including those that also claim for business property relief, will not pay any more tax as a result of the changes in 2026-27, based on the latest available data.
The reforms to agricultural property relief and business property relief are forecast to raise a combined £520 million in 2029-30. The independent Office for Budget Responsibility certified this costing at Autumn Budget 2024 and it does not expect the reforms to have a significant macroeconomic impact.
The Government published a tax information and impact note on the reforms on 21 July 2025. The note explains that the measure is not expected to have a material impact on food security and it is available at www.gov.uk/government/publications/reforms-to-agricultural-property-relief-and-business-property-relief/agricultural-property-relief-and-business-property-relief-reforms.
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 changes to inheritance tax on levels of domestic food production.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government believes its reforms to agricultural property relief and business property relief from 6 April 2026 get the balance right between supporting farms and businesses, and fixing the public finances. The reforms reduce the inheritance tax advantages available to owners of agricultural and business assets, but still mean those assets will be taxed at a much lower effective rate than most other assets. Despite a tough fiscal context, the Government will maintain very significant levels of relief from inheritance tax beyond what is available to others and compared to the position before 1992. Where inheritance tax is due, those liable for a charge can pay any liability on the relevant assets over 10 annual instalments, interest-free.
The Government has set out that the reforms are expected to result in up to 520 estates across the UK claiming agricultural property relief, including those also claiming business property relief, paying more inheritance tax in 2026-27. Almost three-quarters of estates claiming agricultural property relief, including those that also claim for business property relief, will not pay any more tax as a result of the changes in 2026-27, based on the latest available data.
The reforms to agricultural property relief and business property relief are forecast to raise a combined £520 million in 2029-30. The independent Office for Budget Responsibility certified this costing at Autumn Budget 2024 and it does not expect the reforms to have a significant macroeconomic impact.
The Government published a tax information and impact note on the reforms on 21 July 2025. The note explains that the measure is not expected to have a material impact on food security and it is available at www.gov.uk/government/publications/reforms-to-agricultural-property-relief-and-business-property-relief/agricultural-property-relief-and-business-property-relief-reforms.
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 recent assessment her Department has made of the potential impact of changes to inheritance tax relief on family farm businesses.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government believes its reforms to agricultural property relief and business property relief from 6 April 2026 get the balance right between supporting farms and businesses, and fixing the public finances. The reforms reduce the inheritance tax advantages available to owners of agricultural and business assets, but still mean those assets will be taxed at a much lower effective rate than most other assets. Despite a tough fiscal context, the Government will maintain very significant levels of relief from inheritance tax beyond what is available to others and compared to the position before 1992. Where inheritance tax is due, those liable for a charge can pay any liability on the relevant assets over 10 annual instalments, interest-free.
The Government has set out that the reforms are expected to result in up to 520 estates across the UK claiming agricultural property relief, including those also claiming business property relief, paying more inheritance tax in 2026-27. Almost three-quarters of estates claiming agricultural property relief, including those that also claim for business property relief, will not pay any more tax as a result of the changes in 2026-27, based on the latest available data.
The reforms to agricultural property relief and business property relief are forecast to raise a combined £520 million in 2029-30. The independent Office for Budget Responsibility certified this costing at Autumn Budget 2024 and it does not expect the reforms to have a significant macroeconomic impact.
The Government published a tax information and impact note on the reforms on 21 July 2025. The note explains that the measure is not expected to have a material impact on food security and it is available at www.gov.uk/government/publications/reforms-to-agricultural-property-relief-and-business-property-relief/agricultural-property-relief-and-business-property-relief-reforms.
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 had discussions with stakeholders in the banking sector on the use of a mother’s maiden name as an (a) online and (b) telephone security question.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
Strong Customer Authentication (SCA) in the Payment Services Regulations 2017 sets out the requirements which firms must follow when customers are accessing their payment accounts online, including the use of two-factor authentication to verify a customer’s identity. However, the specific questions firms should use to authenticate a customer’s identity are not prescribed, which is a matter for individual firms.
Therefore, the Government has not had discussions with banking stakeholders on the specific uses of first school attended, mother’s maiden name, pet’s name or birthplace as online banking or telephone security questions.
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 discussions her Department has had with stakeholders in the banking sector on the use of a birthplace as an (a) online and (b) telephone security question.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
Strong Customer Authentication (SCA) in the Payment Services Regulations 2017 sets out the requirements which firms must follow when customers are accessing their payment accounts online, including the use of two-factor authentication to verify a customer’s identity. However, the specific questions firms should use to authenticate a customer’s identity are not prescribed, which is a matter for individual firms.
Therefore, the Government has not had discussions with banking stakeholders on the specific uses of first school attended, mother’s maiden name, pet’s name or birthplace as online banking or telephone security questions.
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 discussions her Department has had with stakeholders in the banking sector on the use of a pet’s name as an (a) online and (b) telephone security question.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
Strong Customer Authentication (SCA) in the Payment Services Regulations 2017 sets out the requirements which firms must follow when customers are accessing their payment accounts online, including the use of two-factor authentication to verify a customer’s identity. However, the specific questions firms should use to authenticate a customer’s identity are not prescribed, which is a matter for individual firms.
Therefore, the Government has not had discussions with banking stakeholders on the specific uses of first school attended, mother’s maiden name, pet’s name or birthplace as online banking or telephone security questions.