Written questions by Cross.

What progress her Department has made on considering the inclusion of refined oil products in the scope of the UK Carbon Border Adjustment Mechanism.

From 2027, the Carbon Border Adjustment Mechanism (CBAM) will apply to imported goods from the aluminium, cement, fertiliser, hydrogen, and iron & steel sectors. When considering which sectors should be included in the scope of the CBAM, the government looked primarily at three factors: inclusion in the UK Emissions Trading Scheme (ETS), carbon leakage risk, and feasibility and effectiveness of applying the CBAM. Whilst the refining of fuel is within scope of the UK ETS and is considered at risk of carbon leakage, there are concerns about the sector’s ability to ascertain the carbon content of imported goods at a product level due to high levels of co-production in the sector. Therefore, refined oil products will not be included in the scope of the CBAM from January 2027. The sectoral scope of the CBAM will be kept under review beyond 2027 as new evidence comes to light to reflect methodological and technological advances.

Whether her Department has undertaken modelling on the potential impact of a lifetime cap on gifts for inheritance tax on (a) businesses and (b) individuals.

There is no lifetime cap on gifts for inheritance tax purposes. Information on the rules is available at www.gov.uk/inheritance-tax/gifts. The Chancellor of the Exchequer makes tax policy decisions at fiscal events and the Government does not comment on speculation around future changes to tax policy.

Whether her Department has made an assessment of the potential impact of a potential lifetime gift cap on (a) family (i) farm and (ii) business viability between generations, (b) productivity, (c) food security and (d) job numbers.

There is no lifetime cap on gifts for inheritance tax purposes. Information on the rules is available at www.gov.uk/inheritance-tax/gifts. The Chancellor of the Exchequer makes tax policy decisions at fiscal events and the Government does not comment on speculation around future changes to tax policy.

What assessment her Department has made of the potential impact of a lifetime gift cap on the ability of family (a) farms and (b) businesses to mitigate changes to (i) Agricultural and (ii) Business Property Relief.

There is no lifetime cap on gifts for inheritance tax purposes. Information on the rules is available at www.gov.uk/inheritance-tax/gifts. The Chancellor of the Exchequer makes tax policy decisions at fiscal events and the Government does not comment on speculation around future changes to tax policy.

Whether her Department has considered introducing a lifetime cap on gifts for Inheritance Tax purposes.

There is no lifetime cap on gifts for inheritance tax purposes. Information on the rules is available at www.gov.uk/inheritance-tax/gifts. The Chancellor of the Exchequer makes tax policy decisions at fiscal events and the Government does not comment on speculation around future changes to tax policy.

Whether organisations representing the (a) agricultural and (b) small business sectors have been consulted on the potential introduction of a lifetime cap on gifts for inheritance tax.

There is no lifetime cap on gifts for inheritance tax purposes. Information on the rules is available at www.gov.uk/inheritance-tax/gifts. The Chancellor of the Exchequer makes tax policy decisions at fiscal events and the Government does not comment on speculation around future changes to tax policy.

Whether the £8.3 billion allocated to Great British Energy and its nuclear body will be classified separately from defence expenditure in meeting the Government's commitment to spend 2.5 per cent of GDP on defence by 2027.

The £8.3bn allocated to Great British Energy and its nuclear body is not included in the Government's commitment announced in February to spend 2.6% of GDP on NATO qualifying defence expenditure by 2027.

How many farms in (a) England, (b) Scotland, (c) Wales and (d) Northern Ireland will become liable for inheritance tax based on current agricultural land values from April 2026.

I refer the Honourable Member to the PQ referenced UIN 32333 published on 3rd March 2025 at: https://questions-statements.parliament.uk/written-questions/detail/2025-02-21/32333.

When she plans to publish a response to the oil and gas price mechanism consultation, published on 5 March 2025.

The consultation was open for 12 weeks and closed on 28 May. The government is now analysing stakeholder responses and will publish a summary of those responses in due course.

If she will make an assessment of the potential impact of changes to employers' National Insurance contributions on (a) small and mid-sized quoted companies and (b) the (i) staffing costs and (ii) long-term investment decisions made by those companies.

The Chancellor and I regularly meet and engage with senior figures from across the financial services sector and have, in recent months, hosted a series of forums, including with small to mid-sized quoted companies, as the government works towards developing the first Financial Services Growth and Competitiveness Strategy, which forms part of the government’s modern Industrial Strategy. Through the British Business Bank and its programmes, the government is investing over £1 billion into UK small and medium sized companies in 2025-26; these programmes are expected to crowd-in as much from private sector investors. The BBB is also delivering the British Growth Partnership, a novel initiative to crowd-in pension investment in UK VC and innovative companies. The government is protecting the smallest businesses from changes to Employer NICs by increasing the Employment Allowance to £10,500. This means that in 2025-26, 865,000 employers (43%) will pay no NICs at all, more than half of employers see no change or gain overall from this package and employers can employ up to four full-time workers on the National Living Wage and pay no employer NICs.

What steps she is taking to encourage UK investors to invest in small and mid-sized companies.

The Chancellor and I regularly meet and engage with senior figures from across the financial services sector and have, in recent months, hosted a series of forums, including with small to mid-sized quoted companies, as the government works towards developing the first Financial Services Growth and Competitiveness Strategy, which forms part of the government’s modern Industrial Strategy. Through the British Business Bank and its programmes, the government is investing over £1 billion into UK small and medium sized companies in 2025-26; these programmes are expected to crowd-in as much from private sector investors. The BBB is also delivering the British Growth Partnership, a novel initiative to crowd-in pension investment in UK VC and innovative companies. The government is protecting the smallest businesses from changes to Employer NICs by increasing the Employment Allowance to £10,500. This means that in 2025-26, 865,000 employers (43%) will pay no NICs at all, more than half of employers see no change or gain overall from this package and employers can employ up to four full-time workers on the National Living Wage and pay no employer NICs.

What meetings her Department has had with industry stakeholders on supporting the long-term growth of small and mid-sized quoted companies.

The Chancellor and I regularly meet and engage with senior figures from across the financial services sector and have, in recent months, hosted a series of forums, including with small to mid-sized quoted companies, as the government works towards developing the first Financial Services Growth and Competitiveness Strategy, which forms part of the government’s modern Industrial Strategy. Through the British Business Bank and its programmes, the government is investing over £1 billion into UK small and medium sized companies in 2025-26; these programmes are expected to crowd-in as much from private sector investors. The BBB is also delivering the British Growth Partnership, a novel initiative to crowd-in pension investment in UK VC and innovative companies. The government is protecting the smallest businesses from changes to Employer NICs by increasing the Employment Allowance to £10,500. This means that in 2025-26, 865,000 employers (43%) will pay no NICs at all, more than half of employers see no change or gain overall from this package and employers can employ up to four full-time workers on the National Living Wage and pay no employer NICs.

What steps her Department is taking to prevent companies from de-listing from the London Stock Exchange.​​​​​​​​​​​​​​​​

The government is committed to reinvigorating our capital markets to deliver growth, supporting firms to start, scale, list and stay in the UK. We have already delivered an ambitious set of reforms including overhauling the Prospectus regime and Listing Rules, providing more flexibility to firms and founders raising capital on UK markets. To create a stable regulatory environment, and complementing these reforms, the government is also establishing a 10-year strategy for financial services, with capital markets as a core pillar.

Pursuant to the Answer of 5 February 2025 to Question 27456 on Holiday Accommodation: Tax Allowances, what estimate her Department has made of the total tax receipts from properties operating under the Furnished Holiday Lettings tax regime in 2023-24.

HMRC does not hold data on the total tax receipts from Furnished Holiday Lettings. This is because income tax is calculated and charged based on an individual’s total taxable income, rather than a particular income stream.Further information on Furnished Holiday Lettings, including the amount of income declared, is published by HMRC here:https://www.gov.uk/government/statistics/property-rental-income-statistics/property-rental-income-statistics-2024#income-from-uk-furnished-holiday-lettings

What steps she is taking to ensure transparency in the conduct of the Loan Charge review.

The Government has commissioned an independent review of the Loan Charge. Ray McCann, a highly respected figure in the tax world, is leading the review. His name was suggested by one of the Loan Charge campaigners. To ensure transparency, the terms of reference make it clear that Mr McCann will be supported by a team of officials who have not previously worked on this policy area and will be based outside of HM Treasury and HMRC. Information provided by HMT and HMRC to the review team and factual comments provided on draft reports will be published after the review has concluded. The Government does not think it is right for people affected by the Loan Charge to have to wait years to bring this matter to a close and has therefore ensured that the review has a focused remit, allowing it to report by this summer. The Government will respond by Autumn Budget 2025. Alongside the review, the Government will consult in 2025 on measures to tackle promoters of marketed tax avoidance and has already announced measures to tackle the significant tax avoidance and fraud in the umbrella company market.

Whether she has plans to consult affected stakeholders when establishing the terms of reference for the Loan Charge review.

The Government has commissioned an independent review of the Loan Charge. Ray McCann, a highly respected figure in the tax world, is leading the review. His name was suggested by one of the Loan Charge campaigners. To ensure transparency, the terms of reference make it clear that Mr McCann will be supported by a team of officials who have not previously worked on this policy area and will be based outside of HM Treasury and HMRC. Information provided by HMT and HMRC to the review team and factual comments provided on draft reports will be published after the review has concluded. The Government does not think it is right for people affected by the Loan Charge to have to wait years to bring this matter to a close and has therefore ensured that the review has a focused remit, allowing it to report by this summer. The Government will respond by Autumn Budget 2025. Alongside the review, the Government will consult in 2025 on measures to tackle promoters of marketed tax avoidance and has already announced measures to tackle the significant tax avoidance and fraud in the umbrella company market.

Whether she has made an assessment of the potential merits of expanding the scope of the Loan Charge review to examine the wider contracting sector.

The Government has commissioned an independent review of the Loan Charge. Ray McCann, a highly respected figure in the tax world, is leading the review. His name was suggested by one of the Loan Charge campaigners. To ensure transparency, the terms of reference make it clear that Mr McCann will be supported by a team of officials who have not previously worked on this policy area and will be based outside of HM Treasury and HMRC. Information provided by HMT and HMRC to the review team and factual comments provided on draft reports will be published after the review has concluded. The Government does not think it is right for people affected by the Loan Charge to have to wait years to bring this matter to a close and has therefore ensured that the review has a focused remit, allowing it to report by this summer. The Government will respond by Autumn Budget 2025. Alongside the review, the Government will consult in 2025 on measures to tackle promoters of marketed tax avoidance and has already announced measures to tackle the significant tax avoidance and fraud in the umbrella company market.

Whether she has considered including the role of promoters and intermediaries within the scope of the Loan Charge review.

The Government has commissioned an independent review of the Loan Charge. Ray McCann, a highly respected figure in the tax world, is leading the review. His name was suggested by one of the Loan Charge campaigners. To ensure transparency, the terms of reference make it clear that Mr McCann will be supported by a team of officials who have not previously worked on this policy area and will be based outside of HM Treasury and HMRC. Information provided by HMT and HMRC to the review team and factual comments provided on draft reports will be published after the review has concluded. The Government does not think it is right for people affected by the Loan Charge to have to wait years to bring this matter to a close and has therefore ensured that the review has a focused remit, allowing it to report by this summer. The Government will respond by Autumn Budget 2025. Alongside the review, the Government will consult in 2025 on measures to tackle promoters of marketed tax avoidance and has already announced measures to tackle the significant tax avoidance and fraud in the umbrella company market.

What steps she is taking to ensure an independent appointment process is in place for the Loan Charge review.

The Government has commissioned an independent review of the Loan Charge. Ray McCann, a highly respected figure in the tax world, is leading the review. His name was suggested by one of the Loan Charge campaigners. To ensure transparency, the terms of reference make it clear that Mr McCann will be supported by a team of officials who have not previously worked on this policy area and will be based outside of HM Treasury and HMRC. Information provided by HMT and HMRC to the review team and factual comments provided on draft reports will be published after the review has concluded. The Government does not think it is right for people affected by the Loan Charge to have to wait years to bring this matter to a close and has therefore ensured that the review has a focused remit, allowing it to report by this summer. The Government will respond by Autumn Budget 2025. Alongside the review, the Government will consult in 2025 on measures to tackle promoters of marketed tax avoidance and has already announced measures to tackle the significant tax avoidance and fraud in the umbrella company market.

Pursuant to the Answer of 5 February 2025 to Question 27456 on Holiday Accommodation: Tax Allowances, if she will hold discussions with the Scottish Government on sharing data from the Short-term Let Licensing Scheme to (a) identify the number of Furnished Holiday Let properties in Scotland and (b) inform the implementation of changes to the Furnished Holiday Lettings tax regime in Scotland.

The UK Government regularly engages with the Scottish Government, including on the implementation of policies. The Scottish Government regularly publishes statistics from its Short-term Licensing Scheme, which is publicly available. HMRC currently has no plans investigate Furnished Holiday Lettings in Scotland separately to those in the rest of the UK and the EEA.