House of Commons · Westminster Hall
05 February 2025 · 8 other contributors · 9,399 words
Opened by Joe Powell Lab Kensington and Bayswater
Responding minister: James Murray
Summarised by AI from the official record, so it can contain mistakes.
Joe Powell raised concerns about overseas territories: tax transparency in Westminster Hall. A government minister responded.
Key points
Key requests to Government
The lead MP asks the Government to look at closing this loophole and adding trusts to the property register as soon as possible to help fight economic crime and revitalise high streets by allowing enforcement action when true owners cannot be tracked down.
MPs spoke in turn to share their views and ask questions. Here's what each person said.
Opened the debate
The debate highlights how billions of pounds from suspicious funds have been used to purchase UK properties through shell companies registered in overseas territories, with £5.9 billion in total and £1.1 billion specifically in Joe Powell's constituency. The use of anonymous trusts as ownership vehicles allows the UK property market to continue as a laundromat for illicit finance, accounting for 40% of foreign-owned property.
Agrees that without actions to bring trust-owned property into the register, there is a real danger that significant sums of Russian assets will be left in hands unsanctioned by the UK government, hindering efforts to sanction and use such assets for Ukraine's reconstruction.
Agrees with Rachel Blake, highlighting that Parliament mandated open registers of beneficial ownership by end of 2020 but the deadline was extended. Urges immediate implementation of Order in Council if territories do not comply.
Stressed the importance of fairness, revenue collection for public services, and Britain's responsibility to lead on global tax transparency issues. Advocated for quick implementation of deadlines and inclusion of trusts in registers.
The world’s three biggest corporate tax havens—the British Virgin Islands, the Cayman Islands, and Bermuda—are all British overseas territories costing $84 billion annually in lost corporate tax revenue. Labour should back global efforts such as the UN tax convention to crack down on tax avoidance.
Welcomed the commitment made by leaders of overseas territories to support the Foreign Secretary’s campaign against illicit finance, mentioned progress on beneficial ownership registers.
Highlights the impact of dirty money on Northern Ireland and calls for action against overseas tax havens. Expresses frustration over HMRC pursuing small tax debts while large sums are lost to tax evasion through foreign territories.
Asked to give way, but the time constraint prevented further contributions. Asked for an undertaking that the Government will issue the Order in Council if overseas territories do not co-operate. The hon. Member agrees that open registers are necessary to catch the villains of dirty money, highlighting the importance of public registries for joining up dots and returning stolen funds.
Acknowledges the debate's focus on frozen assets and supports efforts to tackle economic crime in overseas territories.
Government Response
James MurrayThe Exchequer Secretary to the Treasury
Continues to support overseas territories in building vibrant and sustainable economies while upholding international tax standards. The UK collaborates with them actively, ensuring commitments are met. All overseas territories with financial centres have joined the UK in becoming members of the OECD/G20 inclusive framework on base erosion and profit shifting.