Asked by: Lord Foster of Bath (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the UK’s taxation of the gambling sector in comparison to rates in foreign jurisdictions
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The UK has seven gambling duties, which apply to different forms of gambling at different rates. For instance, bingo duty is charged at 10% of gross gambling yield, and Remote Gaming Duty is 21% of gross gambling yield.
No formal assessment of the UK’s taxation of the gambling sector, compared to foreign jurisdictions, has been made. Any such assessment would need to consider the varying regulatory frameworks of other countries, as well as their specific duties and rates. HM Treasury and HMRC make regular informal assessments of the UK's gambling regime in international comparison.
Asked by: Lord Foster of Bath (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of tax avoidance schemes operated by UK licensed gambling companies.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government keeps all tax avoidance risks, including UK licensed gambling companies, under review as part of routine tax compliance monitoring.
The UK has seven separate gambling duties and, in total, the gambling industry paid £3.4bn a year in duty in 2023/24.
Asked by: Lord Foster of Bath (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government when they will publish the results of the VAT energy saving materials relief – improving energy efficiency and reducing carbon emissions consultation, which ran from 15 March to 31 May 2023.
Answered by Baroness Vere of Norbiton
At Spring Budget 2023, the Government published a call for evidence seeking views on potential areas of reform to the current VAT relief on the installation of energy-saving materials (ESMs) in residential accommodation and buildings used solely for a relevant charitable purpose. The response to this call for evidence was published on 11 December and can be found on the Government website.[1]
As set out in that response, in order to qualify for this VAT relief, an ESM must meet a number of criteria, including having a primary purpose of improving energy efficiency and saving carbon emissions. As doors and windows do not meet this criteria, the Government has no plans to extend this VAT relief to these items.
[1] VAT energy-saving materials relief – improving energy efficiency and reducing carbon emissions
Asked by: Lord Foster of Bath (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what plans they have to extend the VAT exemptions for energy savings materials to replacement windows and doors.
Answered by Baroness Vere of Norbiton
At Spring Budget 2023, the Government published a call for evidence seeking views on potential areas of reform to the current VAT relief on the installation of energy-saving materials (ESMs) in residential accommodation and buildings used solely for a relevant charitable purpose. The response to this call for evidence was published on 11 December and can be found on the Government website.[1]
As set out in that response, in order to qualify for this VAT relief, an ESM must meet a number of criteria, including having a primary purpose of improving energy efficiency and saving carbon emissions. As doors and windows do not meet this criteria, the Government has no plans to extend this VAT relief to these items.
[1] VAT energy-saving materials relief – improving energy efficiency and reducing carbon emissions
Asked by: Lord Foster of Bath (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, further to their consultation VAT energy saving materials relief – improving energy efficiency and reducing carbon emissions, which closed on 31 May, what assessment they have made of the benefit of (1) replacement windows, (2) doors, (3) roof lights, and (4) roof windows, being eligible for such relief.
Answered by Baroness Penn
Following the VAT on energy saving materials call for evidence, HMRC has received a large volume of responses. HMRC and HM Treasury are in the process of analysing the responses and will publish a summary of responses and announce next steps in due course.
It is worth highlighting that, as set out in the call for evidence, this VAT relief is targeted at materials that are installed in residential accommodation primarily for the purposes of improving energy efficiency, and should be a cost effective and practical lever for encouraging installation of any qualifying materials.
Asked by: Lord Foster of Bath (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government when they plan to undertake the five-year review of remote gaming duty set out in the 2014 HMRC draft note on Remote Gambling Taxation Reform.
Answered by Lord Agnew of Oulton
The Government has no current plans to publish a review or evaluation document on remote gaming duty.
The reference in the 2014 HMRC draft note relates to the internal monitoring and evaluation process, which is standard practice across all taxes. The benefits, revenue effects and administration of remote gambling taxation are subject to constant evaluation.
Asked by: Lord Foster of Bath (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what estimate they have made of the amount of corporation tax that has been avoided by online gambling companies which operate in the UK since the introduction of the Remote Gaming Duty in 2014.
Answered by Lord Agnew of Oulton
Remote Gaming Duty is a point of consumption tax on gaming providers’ profits from remote gaming. There will be a liability if there is a UK person playing, regardless of where in the world the gaming provider is located. This is not linked to the Corporation Tax position.
A company is liable for UK Corporation Tax on its worldwide income and gains if it is resident in the UK for tax purposes. A non-UK tax resident company may still be liable for UK Corporation Tax if it is trading in the UK through a UK permanent establishment, such as a branch or agency. In this case the non-UK resident company would be liable for UK tax on the worldwide income and gains related to that permanent establishment.
HMRC does not generally estimate speculative amounts that could be payable if offshore companies decided to become UK tax resident.
Asked by: Lord Foster of Bath (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government when they last reviewed the case for reducing VAT on accommodation and attractions to assist the tourism industry; what conclusions they reached; and whether they will publish the analysis that led to those conclusions.
Answered by Lord Agnew of Oulton
At Spring Statement 2018, the Government launched a call for evidence on the impact of VAT and Air Passenger Duty on tourism in Northern Ireland, which also considered UK-wide changes. The response to the call for evidence was published at Budget 2018.Asked by: Lord Foster of Bath (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government how many representations they received during their consultation into VAT, APD and Tourism in Northern Ireland; and of those, how many opposed a reduction in tourism VAT in Northern Ireland.
Answered by Lord Bates
The government published its response to the call for evidence on VAT, APD and Tourism in Northern Ireland at Budget 2018. As is set out in the response document, the government received over 80 individual responses to the call for evidence from a wide range of stakeholders, including trade organisations, public sector bodies, campaign groups and wider industry.
Many of the respondents were in favour of a cut to VAT on tourism, particularly in Northern Ireland.
In light of the legal restrictions on reform of VAT for Northern Ireland exclusively, and the fiscal implications of reform on a UK wide basis, the government will not be making a change to the rate of VAT on tourism related services at this time.
Asked by: Lord Foster of Bath (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of limiting the reduction in tourism VAT to accommodation and attractions.
Answered by Lord Bates
The government explored the impact of VAT on the tourism industry in its recent call for evidence, and published its response at Budget 2018.
A VAT reduction to accommodation and attractions has been estimated to cost the Exchequer £3 billion in the first year. This must be balanced by increased borrowing, reduced public spending or increased taxation elsewhere.
In light of the fiscal implications of a UK wide reform, the government will not be making a change to VAT and tourism at this time.