To ask the Chancellor of the Exchequer, pursuant to the Answer of 27 October 2021 to Question 58753 on Corporation Tax, whether the Government supports the inclusion of a carve-out for financial services under Pillar 2 of the Organisation for Economic Co-operation and Development’s Base Erosion and Profit Shifting (BEPS) framework; and if he will make statement.
24 November 2021
The Government is delighted that a final political agreement has now been reached on the framework for a Two-Pillar Solution.
The regulated financial services and extractives sectors are to be excluded from Pillar One in recognition that the justification for reallocating taxing rights is much weaker, and the practical challenges in doing so are much greater.
There will be no such exclusion for those sectors from Pillar Two.