I refer the Member to the answer given to Question UIN 126456 on 20 April 2026.

The Valuation Office is improving performance in a number of ways, including moving people onto areas of high customer demand, continued investment in IT improvements and piloting using new technology to streamline ways of working. Performance is improving month-on-month and integration with HMRC offers further opportunities to improve how it delivers its services and accelerates modernisation. It is working as quickly as possible to clear cases and continues to prioritise older cases and cases where customers are experiencing financial hardship.

The Valuation Office is improving performance in a number of ways, including moving people onto areas of high customer demand, continued investment in IT improvements and piloting using new technology to streamline ways of working. Performance is improving month-on-month and integration with HMRC offers further opportunities to improve how it delivers its services and accelerates modernisation. It is working as quickly as possible to clear cases and continues to prioritise older cases and cases where customers are experiencing financial hardship.

The Valuation Office is improving performance in a number of ways, including moving people onto areas of high customer demand, continued investment in IT improvements and piloting using new technology to streamline ways of working. Performance is improving month-on-month and integration with HMRC offers further opportunities to improve how it delivers its services and accelerates modernisation. It is working as quickly as possible to clear cases and continues to prioritise older cases and cases where customers are experiencing financial hardship.

No specific analytical assessment has been made of the potential impact of unpaid HMRC liabilities following corporate insolvency on the economy.

The Rural Fuel Duty Relief Scheme has provided a 5p reduction to motorists buying fuel in certain areas since its introduction in 2012. The areas included in the scheme demonstrate certain characteristics such as: pump prices much higher than the UK average; remoteness leading to high fuel transport costs from refinery to filling station, and; relatively low sales meaning that retailers cannot benefit from bulk discounts.

The Chancellor holds regular discussions with her Ministerial colleagues about a broad range of matters. The Government has no plans to amend the list of locations eligible for Rural Fuel Duty Relief.

The Rural Fuel Duty Relief Scheme has provided a 5p reduction to motorists buying fuel in certain areas since its introduction in 2012. The areas included in the scheme demonstrate certain characteristics such as: pump prices much higher than the UK average; remoteness leading to high fuel transport costs from refinery to filling station, and; relatively low sales meaning that retailers cannot benefit from bulk discounts.

The Chancellor holds regular discussions with her Ministerial colleagues about a broad range of matters. The Government has no plans to amend the list of locations eligible for Rural Fuel Duty Relief.

I refer the Honourable Member to the answer given to UIN 84115.

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, fixing the public finances, and funding public services. 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.

Information from claims is not recorded to enable regional or national breakdowns of the number of estates expected to be affected. However, 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 Government published a tax information and impact note on 21 July 2025 and this 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.

The Government will invest more than £2.7 billion a year in sustainable farming and nature recovery from 2026-27 until 2028-29. This includes the largest financial investment into nature-friendly farming ever.

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, fixing the public finances, and funding public services. 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 will invest more than £2.7 billion a year in sustainable farming and nature recovery from 2026-27 until 2028-29. This includes the largest financial investment into nature-friendly farming ever.

The wine industry makes a vital contribution to our economy and society. However, an exemption from alcohol duty that applied only to domestic wine producers is likely to be inconsistent with the UK’s legal obligations. 

Any cut, or even a freeze, to alcohol duty represents a cost to the Exchequer. The baseline assumption is that alcohol duty will be increased annually, so that it does not fall in real terms

As with all taxes, the Government welcomes representations from stakeholders to inform policy development.

The Government has taken difficult but necessary decisions to deliver long-term growth. Fixing the public finances is critical to creating long-term stability in which businesses can invest and thrive.

The Government recognises the need to protect the smallest employers, which is why we have more than doubled the Employment Allowance to £10,500. This means more than half of businesses with NICs liabilities either gain or see no change this year. Businesses will still be able to claim employer NICs reliefs including those for under-21s and under-25 apprentices.

From 2026-27, we intend to introduce permanently lower business rates multipliers for retail, hospitality, and leisure (RHL) properties in England with rateable values (RVs) below £500,000. This permanent tax cut will ensure that eligible RHL businesses benefit from much-needed certainty and support.

Ahead of these changes being made, the Government recognises that business will need support in 2025-26. As such, we have extended the RHL relief for one year at 40 per cent up to a cash cap of £110,000 per business. Under the previous Government, RHL relief was due to end entirely in April 2025. By extending the relief, the Government has saved the average pub, with a RV of £16,800, over £3,300.

To ensure that key amenities are available, and that community assets are protected in rural areas, Rural Rates Relief provides 100% business rates relief for certain properties in eligible rural areas with populations below 3,000, including those that are the only public house, with a RV of up to £12,500.

Any change to the VAT threshold would have potential impacts on small businesses, the economy as a whole, and tax revenues, which the Government would need to consider carefully. The Government keeps all taxes under review and any changes are announced at fiscal events.

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 the reforms are expected to result in up to 520 estates 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 Government has also set out that around 1,500 estates across the UK only claiming business property relief are expected to pay more inheritance tax in 2026-27, with around 1,000 of these expected to only hold shares designated as “not listed” on the markets of recognised stock exchanges, such as the Alternative Investment Market. The remaining 500 estates will include business assets from sectors across the economy that are eligible for business property relief. These reforms mean that around three-quarters of estates claiming business property relief in 2026-27 (excluding those estates only holding shares designated as “not listed”) will not pay any more inheritance tax in 2026-27.

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 21 July 2025 alongside the draft legislation. This 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.

The Government published information in the normal way at Autumn Budget 2024 about the assumptions and methodologies for the costing of reforms. These costings, including those relating to inheritance tax, were all certified by the independent Office for Budget Responsibility (OBR). The policy costings document is available at https://assets.publishing.service.gov.uk/media/6721d2c54da1c0d41942a8d2/Policy_Costing_Document_-_Autumn_Budget_2024.pdf.

The OBR published more information in January 2025 on the modelling for the forthcoming reforms to inheritance tax. Information about the reforms to agricultural property relief and business property relief is available at https://obr.uk/docs/dlm_uploads/IHT-APR-and-BPR-supplementary-release-Jan-2025.pdf. Information about the reforms to the inheritance tax treatment of pensions is available at https://obr.uk/docs/dlm_uploads/IHT-on-pensions-supplementary-release-Jan-2025.pdf.

The Government has set out the rationale, analysis, and expected impact of all the reforms to inheritance tax announced at Autumn Budget 2024. The independent Office for Budget Responsibility certified the costings are reasonable and central for these reforms. This includes the reforms to agricultural property relief and business property relief from 6 April 2026, the reform to the inheritance tax treatment of pensions from 6 April 2027, and the fixing of the nil-rate band and residence nil-rate band at their current levels for a further two years in 2028-29 and 2029-30.

The Government has no plans to commission an independent review of the reforms.

HMRC calculate annually the cost to collect £1 of VAT. In 2024-25, it cost 0.58 pence, i.e. less than one penny, to collect £1 of VAT on average. This ratio has been broadly stable over recent years.

The treatment of Self-Invested Personal Pensions (SIPPs) for the purposes of means-tested benefits and financial assessments does not fall within HMRC’s remit. HMRC’s role is to define and regulate pension schemes for tax purposes, including SIPPs, which may be registered pension schemes under the Finance Act 2004.

Decisions regarding the treatment of pension assets in means-tested benefits are a matter for the Department for Work and Pensions (DWP), while financial assessments for adult social care are administered by local authorities under guidance from the Department of Health and Social Care (DHSC).

HMRC does not define SIPPs as assets for the purposes of benefit entitlement or financial assessments. Any determination of how such pensions are treated in those contexts should be sought from the relevant departments.

The Government recognises the vital role played by the charity sector and the generosity of the British public. That is why we supported charitable giving with over £1.7billion in Gift Aid in tax year 2025.

Donations to UK registered charities recognised by HMRC, that are involved in or run certified carbon credit projects, are already allowable for Gift Aid, an example being ‘The Woodland Trust’.

The UK Government is a strong supporter of the responsible voluntary use of high-integrity carbon and nature credits as part of climate and nature strategies. This commitment is reflected in the launch of the Principles for Voluntary Carbon and Nature Market Integrity and the government consultation which closed in July on their operationalisation, which will further the UK's ambition to become the green finance capital of the world.

HM Revenue and Customs (HMRC) estimates the size of the tax gap, which is the difference between the amount of tax that should, in theory, be paid to HMRC, and what is actually paid. The tax gap statistics and details of the estimate methodologies are published annually and are available at: Measuring tax gaps 2025 edition: tax gap estimates for 2023 to 2024 - GOV.UK.

The latest estimate of the tax gap for VAT is 5.0% of theoretical VAT liability, or £8.9 billion in absolute terms, for tax year 2023 to 2024. This figure implicitly captures, alongside other sources of non-compliance, companies failing to register for VAT, however a separate breakdown is not separately published due to the methodological approach used to calculate it and the associated uncertainties.

HMRC does not make projections of the future loss of tax revenue due to companies failing to register for VAT. ‘Measuring tax gaps 2026 edition: tax gaps estimates for 2024 to 2025’ is scheduled for June 2026.