Asked by: Lord Black of Brentwood (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what estimate they have made of the amount of revenue that will be lost by overseas pupils choosing not to study in the UK as a result of VAT being added to independent schools.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government has carefully considered the impact that changes to the tax treatment of private schools will have on state and private schools. Following scrutiny of the Government’s costing by the independent Office for Budget Responsibility, the Government will confirm its approach to these reforms at the Budget on 30 October, and set out its assessment of the expected impacts of these policy changes the usual way.
Asked by: Lord Black of Brentwood (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government which other countries in (1) the EU, and (2) the rest of the world, charge VAT or equivalent on school fees.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Structural differences in countries’ education systems mean that there are limited meaningful comparisons that can be drawn between the UK and other nations. For example, comparatively high fees in the UK mean that private school participation in the UK is particularly concentrated in the wealthiest families relative to countries such as Germany, France, or the US.
Asked by: Lord Black of Brentwood (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the impact of imposing VAT on school fees for peripatetic music teachers who teach at independent schools.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Where parents or families are paying fees for their child to attend a private school, they will pay VAT on those fees following this change.
Whilst developing these policies, the government has carefully considered the impact that they will have on pupils and their families across both the state and private sector, as well as the impact they will have on state and private schools. Following scrutiny by the independent Office for Budget Responsibility (OBR), details of the Government’s assessment of the expected impacts of these policy changes will be published at the Budget on 30 October in the usual way.
Asked by: Lord Black of Brentwood (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the compatibility of the proposal to impose VAT on independent school fees with the UK's obligations under Article 26(3) of the Universal Declaration of Human Rights; and what advice they have received on this issue.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
On 29 July, the Government announced that, as of 1 January 2025, all education services and vocational training provided by a private school in the UK for a charge will be subject to VAT at the standard rate of 20 per cent. This will also apply to boarding services provided by private schools.
The Government has considered the policy’s interaction with Human Rights law, and is confident that it is compatible with the UK’s obligations under the Human Rights Act.
Asked by: Lord Black of Brentwood (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the compatibility of their proposal to levy VAT on fees at independent schools with Article 2 of the First Protocol of the European Convention on Human Rights; whether they have taken independent legal advice on this matter; and, if so, whether they plan publish such advice.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government is confident that the measure to introduce VAT on private school fees is compatible with the Human Rights Act 1998.
Asked by: Lord Black of Brentwood (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what plans they have, if any, to help British expatriates whose banking facilities in the UK are being closed as a result of Brexit.
Answered by Baroness Penn
The provision of banking services, including whether UK firms can service EEA-based customers, is a commercial decision for firms based on a variety of factors, including the local law and regulation of individual countries, an assessment of profitability or other commercial drivers. The Government does not intervene in these commercial decisions.
Nonetheless, the Government expects banks to act lawfully and in accordance with local regulators’ expectations. We also expect that banks work to ensure good outcomes for their customers and provide timely communications to enable them to make appropriate decisions.
UK providers are expected to contact impacted customers if they need to make any changes to their product or the way it is provided. We encourage customers with questions or concerns to speak to their banking service provider.
Asked by: Lord Black of Brentwood (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government, further to the Written Answer by Lord Agnew of Oulton on 15 February (HL12770), whether (1) ATA Carnets, and (2) portable musical instruments, are included on the List of Goods Applicable to Oral and By Conduct Declarations.
Answered by Lord Agnew of Oulton
The ATA Carnet system is an internationally agreed method of moving certain goods between customs territories temporarily (i.e. a passport for goods). An ATA Carnet simplifies the customs formalities by allowing a single document to be used for clearing goods through customs in the countries that are part of the ATA Carnet system. The ATA Carnet must be presented to customs for endorsement each time the goods enter or leave a customs territory. This is currently a manual, paper-based process and therefore not appropriate for oral and by conduct declarations. It is valid for one year and allows for movement of the goods shown on the Carnet as many times as required during the 12 months to any of the destinations applied for.
Portable musical instruments are on the List of Goods Applicable to Oral and By Conduct Declarations.
Asked by: Lord Black of Brentwood (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what plans they have to put in place a rebate system for employers resident in the UK and workers from EU countries that chose not to join the EU–UK Social Security Coordination Agreement before 31 January.
Answered by Lord Agnew of Oulton
The Trade and Cooperation Agreement reached with the EU includes social security provisions that have practical benefits for UK and EU citizens travelling between the UK and EU.
These provisions support business and trade by ensuring that cross-border workers and their employers are only liable to pay social security contributions in one state at a time.
All Member States have expressed their wish to opt-in to apply the detached worker provision. This means that workers moving temporarily between the UK and the EU will continue to pay social security contributions in their home state.
Asked by: Lord Black of Brentwood (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government whether (1) customs declarations are, or (2) an ATA Carnet is, required for the movement of musical instruments and equipment between Great Britain and Northern Ireland.
Answered by Lord Agnew of Oulton
No export or exit declarations are required for goods leaving Great Britain (GB) for Northern Ireland (NI).
On entry into NI from GB, if musical instruments and equipment are to be used for commercial purposes, some additional process is required, as with other goods. If they are accompanied (for example, if contained in a passenger’s baggage) then the person carrying them will be deemed to have made a declaration by conduct. If the instruments and equipment are not accompanied (for example, they are carried as freight) then a declaration will be required.
Most goods in free circulation in Northern Ireland – including musical instruments and equipment – currently benefit from unfettered access to GB, such that no customs declarations are required either on exit from NI or entry to GB.
ATA Carnets are an option for temporarily moving goods between the UK, EU and NI. Use of an ATA Carnet is generally a commercial decision based on cost effectiveness and an individual’s/business’s circumstances.
Asked by: Lord Black of Brentwood (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government whether an ATA Carnet is required for the portable transportation of musical instruments and equipment for (1) UK musicians working in the EU, and (2) EU musicians working in the UK.
Answered by Lord Agnew of Oulton
ATA carnets are available for commercial goods, professional equipment or goods going to trade fairs or exhibitions in participating countries, which are moved on a temporary basis to a new customs territory (i.e. they will not be sold and will return to the country of origin). This includes musical instruments. Carnets allow a single document to be used for clearing goods through customs in the countries that are part of the ATA carnet system.
There are two other options available when moving musical instruments temporarily between the EU and the UK (used together for export and reimport procedures); Temporary Admission and Returned Goods Relief.
Temporary Admission is a customs procedure that allows a person to import non-UK goods temporarily into the UK. Using Temporary Admission means any import duty or import VAT is suspended as long as the goods are removed from the UK at a later date. Temporary Admission is useful if a person needs to import goods such as samples, professional equipment or items for auction, exhibition or demonstration temporarily into the UK.
Returned Goods Relief (RGR) allows eligible items to be reimported free from customs duty and import VAT. The relief can apply to exported items returning to the UK if certain conditions can be met. For RGR to apply, goods must normally be returned within three years of the date of export unless exceptional circumstances exist. For RGR on import VAT to apply the exporter and importer must be the same person and any VAT due must have been previously paid in the UK or EU.
Temporary Admission and Returned Goods Relief may be available in the EU. Further information on EU customs procedures can be found online.