Asked by: Lord Mackinlay of Richborough (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government how inheritance tax will apply to small self-administered pension schemes that hold pooled assets which qualify for agricultural property relief, but which are likely to have multiple beneficiaries.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
As announced at Autumn Budget 2024, from 6 April 2027 most unused pension funds and death benefits will be included within the value of a person’s estate for inheritance tax purposes.
The nature of the assets held by a pension scheme is not taken into account for inheritance tax purposes. This is the existing policy on the treatment of assets held by a pension scheme.
Comprehensive guidance will be published on these changes ahead of coming into effect.
Asked by: Lord Mackinlay of Richborough (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government how inheritance tax will apply to self-invested personal pension schemes that include assets which qualify for agricultural property relief.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
As announced at Autumn Budget 2024, from 6 April 2027 most unused pension funds and death benefits will be included within the value of a person’s estate for inheritance tax purposes.
The nature of the assets held by a pension scheme is not taken into account for inheritance tax purposes. This is the existing policy on the treatment of assets held by a pension scheme.
Comprehensive guidance will be published on these changes ahead of coming into effect.
Asked by: Lord Mackinlay of Richborough (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what plans they have to reduce VAT on work to maintain and repair listed properties.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government has no plans to reduce the VAT charged on work to maintain and repair listed properties.
VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services. VAT is the UK’s second largest tax forecast to raise £171 billion in 2024/25. Taxation is a vital source of revenue that helps to fund vital public services.
Evidence suggests that businesses only partially pass on any savings from lower VAT rates. In some cases, reliefs do not represent good value for money, as there is no guarantee that savings will be passed on to consumers.
To preserve heritage, restorative work carried out on listed buildings previously benefited from a zero rate of VAT. However, this relief was abolished in 2012, as it was primarily used to carry out extension work unnecessary for heritage purposes. Withdrawing this relief simplified VAT rules and also removed the scope for error when categorising construction work as either alteration or repair.
The Department for Culture, Media and Sport administer the Listed Places of Worship Grant Scheme. This provides grants towards VAT paid on repairs and maintenance to the nation's listed places of worship.
The Government keeps all tax policy under review, and any decisions on tax policy will be announced at fiscal events in the context of the overall public finances.
Asked by: Lord Mackinlay of Richborough (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what plans they have to investigate the openness, efficiency and functioning of the insurance market relating to listed properties.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government is committed to supporting the successful protection of our heritage for the benefit of present and future generations.
The UK’s home insurance market is competitive, with many providers offering a variety of insurance products. The Financial Conduct Authority (FCA), the independent regulator of financial services, has a statutory objective to promote competition in the interests of consumers. FCA rules also require firms to offer products that deliver fair value to consumers. The FCA monitors firms to ensure they comply with its rules and has powers to take action if necessary.
As standard home insurance may not offer adequate cover for all listed buildings, the Government encourages consumers to shop around for the most suitable cover at the best price. It may be helpful to consult an insurance broker, who will be able to help search the market for specialist providers.
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.