Asked by: Bob Stewart (Independent - Beckenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential effect of the OECD's global minimum corporation tax proposals on costs for UK businesses.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
The OECD’s Two Pillar Solution to the process of digitalisation represents a major reform of the international tax framework and will help to ensure multinational businesses pay their fair share, with the right companies paying the right amount of tax in the right place.
Both Pillars 1 and 2 will be subject to the standard tax policymaking process, with their impacts formally assessed through the OBR forecast process.
Asked by: Bob Stewart (Independent - Beckenham)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, if he will assess the potential merits of abolishing UK corporation tax.
Answered by Jane Ellison
The Government is committed to a competitive and fair tax system, one that encourages innovation and business investment and taxes the profits of economic activity that occur in the UK. That is why this Government has cut the main rate of corporation tax from 28% in 2010 to 17% in 2020, and announced a package of measures at Budget 2016 to tackle aggressive tax planning by multinationals, forecast to raise around £8 billion across the next five years.
Corporation tax raised £44.4 billion for the Exchequer in 2015/16. This revenue makes a vital contribution to the Government’s wider objectives of delivering vital public services and fiscal sustainability.
The Government will continue to explore how the tax regime can be reformed to best support business investment and growth.
Asked by: Bob Stewart (Independent - Beckenham)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, if he will make it his policy to introduce a sovereign wealth fund.
Answered by Simon Kirby
The government’s current priority is to reduce the deficit and start paying down national debt.
Asked by: Bob Stewart (Independent - Beckenham)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, whether he plans to bring forward legislation for a city tax on tourists and other visitors.
Answered by David Gauke
The Government has no plans to introduce a ‘city tax’ on tourists or visitors to the UK.
Asked by: Bob Stewart (Independent - Beckenham)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, if he will make it his policy to extend inheritance tax relief to (a) a mother and father and (b) a sibling or siblings living together in the family home.
Answered by David Gauke
At the Summer Budget 2015, the Government announced it will reduce the burden of inheritance tax for families by making it easier to pass on a home to direct descendants. Information about this measure is available at https://www.gov.uk/government/publications/inheritance-tax-main-residence-nil-rate-band-and-the-existing-nil-rate-band/inheritance-tax-main-residence-nil-rate-band-and-the-existing-nil-rate-band.
The Government has sought to focus on the passing of homes to the next generation in the immediate family. This ensures that parents know they will be able to pass on the family home that they have worked hard for to the next generation without the worry of inheritance tax. Around 80% of estates with both a residence and an inheritance tax liability are expected to be in a position to benefit.
Asked by: Bob Stewart (Independent - Beckenham)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, if he will bring forward proposals to reduce the level of business rates on small shopkeepers of Beckenham constituency.
Answered by David Gauke
The government has taken significant action to reduce the burden of business rates on small shopkeepers across all areas in England. For 2015-16, the Small Business Rate Relief will be doubled supporting 575,000 businesses and the retail discount will increase from £1,000 to £1,500 for 300,000 shops, pubs, restaurants and cafes with a rateable value of £50,000 or below. Further, the 2% business rates multiplier cap will continue in 2015-16 for all ratepayers.
Asked by: Bob Stewart (Independent - Beckenham)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, if he will bring forward legislative proposals to introduce a sales tax on companies which operate in the UK and locate their headquarters overseas.
Answered by David Gauke
Along with most major economies in the world, the UK has a territorial tax system that levies corporation tax on profits derived from economic activity carried out here – corporation tax is not levied on either sales or turnover.
While the Government always keeps the tax system under review, in this case it is not immediately obvious that introducing a sales tax would be a suitable approach as the tax would be likely to be passed on to consumers.