Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether his Department expressed support for the US Administration's Made in America Tax Plan including a global minimum tax rate proposed at the G7 foreign and development ministers meeting from 3 to 5 May 2021 in London.

The Government welcomes the US administration's renewed commitment to reaching a two-pillar solution reforming the international tax framework through the OECD, and it is optimistic that an agreement can be reached.

The OECD proposals to update the international tax framework have been under negotiation for a number of years and the UK has been at the forefront of these talks.

A global minimum tax (Pillar 2) is an important part of the package being developed by the OECD and the UK has been working with other countries on this initiative for a number of years.

The Government supports agreement on a global minimum tax. It is also crucial that this is agreed alongside changes to profit allocation rules (Pillar 1). Pillar 1 is vital to ensure large digital businesses pay more tax in the UK, commensurate with their economic activities.

The Chancellor has made supporting progress towards a two-pillar solution a priority of the UK’s G7 presidency. As such, he has regular discussions with his G7 counterparts on these issues.

Given that these discussions are still in progress and important details are still subject to international negotiation, it would not be appropriate for the Government to provide detailed impact assessments.