Charlie Elphicke – 2014 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Charlie Elphicke on 2014-06-09.

To ask Mr Chancellor of the Exchequer, if he will assess the merits of introducing tax-rate floors to contracts involving Private Finance Initiative arrangements.

Danny Alexander

In December 2012, the Government launched Private Finance 2 (PF2). PF2 introduces significant reforms to the Private Finance Initiative (PFI) and gives a new approach to the delivery of public infrastructure. It is based on the outcomes of a wide call for evidence held across both the public and private sectors.

The Government seeks to ensure that the UK tax system is competitive for all companies and that the UK is an attractive place to do business, while retaining proportionate anti-avoidance protection.

A special purpose vehicle set up for the purposes of delivering a PFI project is no different from any other corporate entity and is therefore required to pay corporation tax in accordance with government rules.