Asked by: Lord Mackinlay of Richborough (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the tax lost through the continuing zero rating of VAT on children’s clothes.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The estimates of the Exchequer costs of the requested VAT reliefs in 2023-24 are as follows.
The estimate of the cost of zero-rating printed matter and e-publications, which includes books, was £1,700m. The objective of this relief is to support literacy and reading by reducing the cost of books, newspapers, magazines etc. in printed and electronic form.
The estimate of the cost of zero-rating children’s clothing and protective footwear and helmets was £2,100m. The objective of this relief is to support families by reducing the cost of children’s clothing.
The estimated cost of the exemption for burial and cremation was £720m. This relief provides exemption from VAT for burial and exemption services.
These estimates, together with those for previous years, may be found in the Tax Relief Statistics published by HM Revenue and Customs on GOV.UK . The latest estimates were published in December 2023 with values for financial year 2023-24 being forecasts. Updated estimates will be published on 5 December 2024.
Asked by: Lord Mackinlay of Richborough (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the tax lost through the continuing exemption from VAT for funerals.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The estimates of the Exchequer costs of the requested VAT reliefs in 2023-24 are as follows.
The estimate of the cost of zero-rating printed matter and e-publications, which includes books, was £1,700m. The objective of this relief is to support literacy and reading by reducing the cost of books, newspapers, magazines etc. in printed and electronic form.
The estimate of the cost of zero-rating children’s clothing and protective footwear and helmets was £2,100m. The objective of this relief is to support families by reducing the cost of children’s clothing.
The estimated cost of the exemption for burial and cremation was £720m. This relief provides exemption from VAT for burial and exemption services.
These estimates, together with those for previous years, may be found in the Tax Relief Statistics published by HM Revenue and Customs on GOV.UK . The latest estimates were published in December 2023 with values for financial year 2023-24 being forecasts. Updated estimates will be published on 5 December 2024.
Asked by: Lord Mackinlay of Richborough (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the tax lost through the continuing zero rating of VAT on books.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The estimates of the Exchequer costs of the requested VAT reliefs in 2023-24 are as follows.
The estimate of the cost of zero-rating printed matter and e-publications, which includes books, was £1,700m. The objective of this relief is to support literacy and reading by reducing the cost of books, newspapers, magazines etc. in printed and electronic form.
The estimate of the cost of zero-rating children’s clothing and protective footwear and helmets was £2,100m. The objective of this relief is to support families by reducing the cost of children’s clothing.
The estimated cost of the exemption for burial and cremation was £720m. This relief provides exemption from VAT for burial and exemption services.
These estimates, together with those for previous years, may be found in the Tax Relief Statistics published by HM Revenue and Customs on GOV.UK . The latest estimates were published in December 2023 with values for financial year 2023-24 being forecasts. Updated estimates will be published on 5 December 2024.
Asked by: Lord Mackinlay of Richborough (Conservative - Life peer)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made a comparative assessment of the competitiveness of the UK's carbon taxation regime.
Answered by Gareth Davies - Shadow Financial Secretary (Treasury)
The UK Emissions Trading Scheme is our main carbon pricing scheme and promotes cost-effective decarbonisation by allowing businesses to cut carbon where it is cheapest to do so.
The Government remains committed to supporting the competitiveness of UK sectors.
This is why we protect ETS participants by allocating free allowances, with installations vulnerable to carbon leakage receiving up to 100% of their emissions allowances for free based on sector benchmarks.
Asked by: Lord Mackinlay of Richborough (Conservative - Life peer)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will take steps to convene a roundtable for independent oil companies operating in the North Sea on the potential impact of the Energy Profits Levy on investment in the UK.
Answered by James Cartlidge - Shadow Secretary of State for Defence
The Energy Profits Levy (EPL) was introduced in May 2022 in response to sharp increases in oil and gas prices over the past year. At the Autumn Statement 2022, the Chancellor announced that the rate of the levy would rise by ten percentage points to 35% from 1 January 2023 and will last until 31 March 2028.
The government has been clear it wants to see the oil and gas sector reinvest its profits to support the economy, jobs and the UK’s energy security. That is why the levy includes a new investment allowance, ensuring that for every £1 an oil and gas company spends, they can claim around 91p in tax relief for most types of investment expenditure.
For every £100 an oil and gas company invests to decarbonise upstream oil and gas production, they will be able to deduct £109.25 when calculating their levy profits. This provides an immediate and significant fiscal incentive to reinvest profits in the UK.
The government published a Tax Information and Impact Note (TIIN) on the Energy Profits Levy changes announced at the Autumn Statement. This is available at: https://www.gov.uk/government/publications/changes-to-the-energy-oil-and-gas-profits-levy/energy-oil-and-gas-profits-levy. The TIIN sets out that the levy is not expected to have a significant macroeconomic impact on the level of business investment.
In December 2022, the Chancellor attended a roundtable with representatives from the oil and gas sector. The government has regular engagement with a range of stakeholders, including independent oil and gas companies operating in the North Sea, and I have also met with representatives of North Sea Oil and Gas.
Asked by: Lord Mackinlay of Richborough (Conservative - Life peer)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has made an assessment of the impact of the Energy Profits Levy on investment in the North Sea, including by independent operators.
Answered by James Cartlidge - Shadow Secretary of State for Defence
The Energy Profits Levy (EPL) was introduced in May 2022 in response to sharp increases in oil and gas prices over the past year. At the Autumn Statement 2022, the Chancellor announced that the rate of the levy would rise by ten percentage points to 35% from 1 January 2023 and will last until 31 March 2028.
The government has been clear it wants to see the oil and gas sector reinvest its profits to support the economy, jobs and the UK’s energy security. That is why the levy includes a new investment allowance, ensuring that for every £1 an oil and gas company spends, they can claim around 91p in tax relief for most types of investment expenditure.
For every £100 an oil and gas company invests to decarbonise upstream oil and gas production, they will be able to deduct £109.25 when calculating their levy profits. This provides an immediate and significant fiscal incentive to reinvest profits in the UK.
The government published a Tax Information and Impact Note (TIIN) on the Energy Profits Levy changes announced at the Autumn Statement. This is available at: https://www.gov.uk/government/publications/changes-to-the-energy-oil-and-gas-profits-levy/energy-oil-and-gas-profits-levy. The TIIN sets out that the levy is not expected to have a significant macroeconomic impact on the level of business investment.
In December 2022, the Chancellor attended a roundtable with representatives from the oil and gas sector. The government has regular engagement with a range of stakeholders, including independent oil and gas companies operating in the North Sea, and I have also met with representatives of North Sea Oil and Gas.
Asked by: Lord Mackinlay of Richborough (Conservative - Life peer)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has made a recent assessment of the potential impact of the Energy Profits Levy on independent North Sea oil and gas companies.
Answered by James Cartlidge - Shadow Secretary of State for Defence
The Energy Profits Levy (EPL) was introduced in May 2022 in response to sharp increases in oil and gas prices over the past year. At the Autumn Statement 2022, the Chancellor announced that the rate of the levy would rise by ten percentage points to 35% from 1 January 2023 and will last until 31 March 2028.
The government has been clear it wants to see the oil and gas sector reinvest its profits to support the economy, jobs and the UK’s energy security. That is why the levy includes a new investment allowance, ensuring that for every £1 an oil and gas company spends, they can claim around 91p in tax relief for most types of investment expenditure.
For every £100 an oil and gas company invests to decarbonise upstream oil and gas production, they will be able to deduct £109.25 when calculating their levy profits. This provides an immediate and significant fiscal incentive to reinvest profits in the UK.
The government published a Tax Information and Impact Note (TIIN) on the Energy Profits Levy changes announced at the Autumn Statement. This is available at: https://www.gov.uk/government/publications/changes-to-the-energy-oil-and-gas-profits-levy/energy-oil-and-gas-profits-levy. The TIIN sets out that the levy is not expected to have a significant macroeconomic impact on the level of business investment.
In December 2022, the Chancellor attended a roundtable with representatives from the oil and gas sector. The government has regular engagement with a range of stakeholders, including independent oil and gas companies operating in the North Sea, and I have also met with representatives of North Sea Oil and Gas.
Asked by: Lord Mackinlay of Richborough (Conservative - Life peer)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the cost of extending VAT relief on energy efficient materials to secondary glazing.
Answered by Lucy Frazer
The Government has not estimated the cost of including secondary glazing in the VAT relief for energy saving materials.
HMRC does not hold information on VAT revenue from specific products or services, such as secondary glazing, because businesses are not required to provide figures at a product level on their VAT returns, as this would impose an excessive administrative burden.
Asked by: Lord Mackinlay of Richborough (Conservative - Life peer)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has made a recent assessment of the potential effect on encouraging people and businesses to be more environmentally-friendly and on energy security of establishing an exemption from any valuation uplift of business premises for business rates purposes when solar panels have been fitted.
Answered by Mel Stride - Shadow Chancellor of the Exchequer
Solar panels are only rateable for business rates purposes where they are supplying energy for the business occupying the property. Where the energy generated is wholly or mostly sold to consumers, the panels are exempt from business rates. This is an established principle for rating energy generation. New microgeneration installations benefit from a business rate exemption until the following revaluation.
Businesses occupying properties with solar panels are also benefiting from recent reforms and reductions to business rates worth over £10bn by 2023, including switching from Retail Price Index to Consumer Price Index uprating of business rates and increasing the frequency of revaluations.
Asked by: Lord Mackinlay of Richborough (Conservative - Life peer)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, if he will make it his policy to suspend penalties for tax credit over-payments arising from the high income child benefit tax charge for PAYE taxpayers and apply the suspended penalty provisions of Paragraph 14, Schedule 24, of the Finance Act 2007 to any outstanding penalties.
Answered by Elizabeth Truss
The High Income Child Benefit Charge (HICBC) was introduced to ensure that support is targeted at those who need it most. It applies to anyone with an income over £50,000 who claims Child Benefit, or whose partner claims Child Benefit. The tax charge increases gradually for taxpayers with incomes between £50,000 and £60,000.
Those who continue to receive Child Benefit must register for Self Assessment to declare their Child Benefit payments and pay the tax charge through their tax return. HM Revenue and Customs encourages individuals to contact it straightaway to pay the tax charge and the vast majority do so.
Failure to notify penalties are chargeable where an individual does not register for Self Assessment by 5 October following the tax year when the tax charge becomes due. Penalties are only charged if the tax due is not paid in full by the following 31 January. These penalties are statutory and are charged unless the individual has a reasonable excuse given their individual circumstances.