Steve McCabe – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Steve McCabe on 2016-06-28.

To ask Mr Chancellor of the Exchequer, what criteria his Department uses to decide when and how to negotiate the UK’s tax treaties with other countries.

Mr David Gauke

HM Revenue and Customs (HMRC) have responsibility for negotiating the UK’s double taxation agreements, subject to oversight by HM Treasury. HMRC run a periodic consultation exercise to establish the negotiating priorities, which are then approved by ministers. As part of this exercise they consider representations made by UK businesses, non-governmental organisations and government departments, as well as the UK’s diplomatic missions throughout the world. The results of the last such review were published by HMRC on the gov.uk website in November 2015.

Decisions on the negotiation or renegotiation of a tax treaty are taken on the basis of a range of factors including the results of HMRC’s periodic review of the tax treaty network, economic factors, the need to counter avoidance and evasion, and the role of treaties in promoting development. We also receive requests from countries to negotiate with us, and we will endeavour to accommodate them as time and negotiating resources permit. Given the number of treaties the UK already has, most of the programme will involve renegotiating existing agreements.