Asked by: Stuart Anderson (Conservative - South Shropshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when she plans to reply to the email from the hon. Member for South Shropshire dated 11 September 2025 with case reference number SA36696.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The email from the hon. Member for South Shropshire dated 11 September 2025 with case reference number SA36696 has been transferred to the Department for Business and Trade (DBT). DBT will respond in due course.
Asked by: James McMurdock (Independent - South Basildon and East Thurrock)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans she has to amend inheritance tax legislation to ensure that compensation paid to the estates of deceased victims of the Infected Blood scandal is exempt from inheritance tax.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
At Budget 2025, the government announced that it would extend the existing relief from inheritance tax for compensation payments made from the Infected Blood Compensation Scheme and the Infected Blood Interim Compensation Payment Scheme (‘infected blood compensation payments’). A Tax Information and Impact Note has been published and can be found here: Inheritance Tax and Infected Blood compensation payments - GOV.UK.
Finance Bill 2025-26 contains a power to make changes to the inheritance tax treatment of infected blood compensation schemes in secondary legislation. The government will lay regulations subject to parliamentary approval of the Bill. More information about what this means in practical terms and what action impacted individuals should take ahead of regulations being made were published in this Written Ministerial Statement: Inheritance tax relief for infected blood compensation payments
Asked by: Carla Lockhart (Democratic Unionist Party - Upper Bann)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact in Northern Ireland of the abolition of VAT exemption for private school fees on the parents of children with special educational needs; and what estimate she has made of additional VAT receipts arising in Northern Ireland.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government conducted thorough and detailed analysis of the impacts of this policy, including in Northern Ireland, and published a Tax Impact and Information Note (TIIN) which sets out this analysis. This is a comprehensive assessment of the impacts on individuals and families, businesses and the wider economy, as well as equalities impacts. It was published online and can be found here:
www.gov.uk/government/publications/vat-on-private-school-fees/ac8c20ce-4824-462d-b206-26a567724643
In Northern Ireland, the Education Authority (EA) is responsible for funding placements of pupils with a statement of special educational needs (SEN) within a private school. The EA can recover the VAT that it is charged on these pupils’ fees, which means that those pupils are unaffected by the removal of the VAT exemption.
Due to how VAT is collected it is not possible to estimate the VAT receipts arising in Northern Ireland. However, overall this policy is expected to raise £1.7 billion per year by 2029/30.
Asked by: Geoffrey Clifton-Brown (Conservative - North Cotswolds)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the OBR has reviewed the Treasury’s 2020 forecast of the fiscal impact of extending the VAT RES to EU residents.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The OBR’s estimate is that the withdrawal of the VAT Retail Export Scheme will save the Exchequer around £540 million per year by 2025-26.
The Government has also noted recent external data, which shows that tourism numbers and spending for the UK has recovered at a similar rate following the pandemic to other European economies that offer tax-free shopping
The Government has carefully considered external analysis estimating that a new tax-free shopping scheme would generate more revenue than cost for the Exchequer, as well as supporting data from a wide range of business stakeholders across the UK. However, these do not provide sufficient evidence that a new tax-free shopping scheme would have greater benefits to the UK than costs.
The Government therefore has no plans to introduce a new tax-free shopping scheme in Great Britain.
Asked by: Edward Morello (Liberal Democrat - West Dorset)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact on fraud victims of proposals allowing the Financial Ombudsman Service to pause cases at registration pending police or Serious Fraud Office investigations.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The government takes the issue of fraud very seriously and is dedicated to protecting the public from this appalling crime. As set out in our manifesto and as part of our Plan for Change, the government will introduce a new, expanded Fraud Strategy encompassing the modern-day threats that so many people become a victim to.
The government recognises the important role the Financial Ombudsman Service (FOS) plays in providing consumers with a cost-free and quick route to resolve disputes with financial services firms. However, the government’s review of the FOS concluded that in a small but significant minority of cases, the framework in which the FOS operates has resulted in it acting as a quasi-regulator.
That is why, as part of the Leeds Reforms, the Chancellor announced the most significant package of reforms to the FOS since its inception to provide greater certainty and predictability for consumers and firms who use the FOS. The government’s consultation on the proposed reforms closed on 8 October and it will set out next steps in due course.
Victims of fraud who wish to make a complaint about their financial services provider will continue to be able to bring complaints to the FOS, and the proposed changes to the legislative framework under which the FOS operates will not affect the FOS’s role in handling these complaints.
The Financial Conduct Authority (FCA) expects all firms to maintain strong systems and controls with regards to fraud prevention to deliver good outcomes for customers, including seeking to avoid foreseeable harm. It has made tackling fraud one of its priorities in its 5-year strategy from 2025 to 2030. The FCA is continuing to prioritise fighting financial crime, including by working with firms to strengthen their anti-crime systems, working with other relevant agencies who tackle crime to share intelligence and coordinate action, and working with consumers to raise awareness and ensure they have the tools they need to protect themselves.
Asked by: Edward Morello (Liberal Democrat - West Dorset)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to ensure that fraud victims retain access to Financial Ombudsman Service investigations without being forced into civil court proceedings.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The government takes the issue of fraud very seriously and is dedicated to protecting the public from this appalling crime. As set out in our manifesto and as part of our Plan for Change, the government will introduce a new, expanded Fraud Strategy encompassing the modern-day threats that so many people become a victim to.
The government recognises the important role the Financial Ombudsman Service (FOS) plays in providing consumers with a cost-free and quick route to resolve disputes with financial services firms. However, the government’s review of the FOS concluded that in a small but significant minority of cases, the framework in which the FOS operates has resulted in it acting as a quasi-regulator.
That is why, as part of the Leeds Reforms, the Chancellor announced the most significant package of reforms to the FOS since its inception to provide greater certainty and predictability for consumers and firms who use the FOS. The government’s consultation on the proposed reforms closed on 8 October and it will set out next steps in due course.
Victims of fraud who wish to make a complaint about their financial services provider will continue to be able to bring complaints to the FOS, and the proposed changes to the legislative framework under which the FOS operates will not affect the FOS’s role in handling these complaints.
The Financial Conduct Authority (FCA) expects all firms to maintain strong systems and controls with regards to fraud prevention to deliver good outcomes for customers, including seeking to avoid foreseeable harm. It has made tackling fraud one of its priorities in its 5-year strategy from 2025 to 2030. The FCA is continuing to prioritise fighting financial crime, including by working with firms to strengthen their anti-crime systems, working with other relevant agencies who tackle crime to share intelligence and coordinate action, and working with consumers to raise awareness and ensure they have the tools they need to protect themselves.
Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department is taking steps to support self-employed people who require support to file their tax returns due to economic or health difficulties; and whether she has made a recent assessment of the potential merits of reforming the penalty system, in particular for those who do not owe any tax.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The government has reformed penalties and at Budget 2025 confirmed the introduction of a new penalty regime for late filing of SA returns and late payment of income tax that will now apply to all SA customers from April 2027. This reform of late filing penalties will reduce the penalties a customer can accumulate for filing late and will introduce a further safeguard so people will not receive a financial penalty for a single failure to file on time.
HMRC also has dedicated support in place for those facing personal difficulties and encourages anyone struggling to meet their obligations to make contact as soon as possible by phone or online.
This includes:
The tax system contains obligations, set out in law, to ensure that HMRC can collect the correct tax to fund vital public services. HMRC is bound by law to apply penalties where customers do not meet these obligations. Penalties also help to reassure customers who comply with their obligations that HMRC are applying the rules fairly and consistently.
Under Self Assessment (SA), HMRC requires information from customers in their tax returns to determine whether they have any liability to income tax. Even where a customer has no tax to pay, the information provided within their SA return ensures that taxpayers receive the benefits to which they are entitled, such as Tax-Free Childcare.
Where HMRC charges a penalty, a customer can formally appeal. HMRC will cancel any penalties where they accept that a taxpayer had a reasonable excuse for not filing their return on time.
Asked by: James McMurdock (Independent - South Basildon and East Thurrock)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent estimate her Department has made of the potential impact of the Autumn Budget 2025 on business costs to the average pub.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.
At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.
Without our support, the pub sector as a whole would have faced a 45% increase in the total bills they pay next year. Because of the support we’ve put in place, this has fallen to just 4%.
More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. We are doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties, including those on the high street.
The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.
In addition to our business rates support, the Chancellor also announced the first National Licensing Policy Framework at Budget 2025, which sets a new strategic direction for licensing authorities to have more regard for growth when reviewing licensing applications and decisions.
In addition, and responding to sector asks, the government committed to explore further planning reforms to make it easier for pubs and hospitality businesses to expand and grow. To help drive these reforms, we will appoint a new Retail and Hospitality Envoy to champion these sectors across government.
This is on top of measures we have already announced, such as:
The Government will continue to work closely with the pub and hospitality sector and are committed to help them succeed.
Asked by: Daisy Cooper (Liberal Democrat - St Albans)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions her department has had with Amazon on its proposal to support the collection of £700 million in VAT receipts from online marketplace sellers operating overseas.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Since 1 January 2021 overseas sellers, or online marketplaces where they facilitate the sale, are required to be registered and account for VAT for supplies of low value imports of £135 or less. Where an overseas seller sells goods located in the UK at the point of sale via an online marketplace, the online marketplace is liable for the VAT for goods of any value.
The changes were introduced to ensure a level playing field for UK high street and online retailers, ensure the continued flow of goods at the border and improve compliance. Certified analysis by the Office for Budget Responsibility (OBR) estimates the changes, together with the abolishment of Low Value Consignment relief, will raise £1.8 billion per annum by 2026-27.
The Government engages with a wide range of stakeholders as part of the policy making process.
Asked by: Geoffrey Clifton-Brown (Conservative - North Cotswolds)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the Treasury has reviewed its 2020 forecast of the fiscal impact of extending the VAT RES to EU residents.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The OBR’s estimate is that the withdrawal of the VAT Retail Export Scheme will save the Exchequer around £540 million per year by 2025-26.
The Government has also noted recent external data, which shows that tourism numbers and spending for the UK has recovered at a similar rate following the pandemic to other European economies that offer tax-free shopping
The Government has carefully considered external analysis estimating that a new tax-free shopping scheme would generate more revenue than cost for the Exchequer, as well as supporting data from a wide range of business stakeholders across the UK. However, these do not provide sufficient evidence that a new tax-free shopping scheme would have greater benefits to the UK than costs.
The Government therefore has no plans to introduce a new tax-free shopping scheme in Great Britain.