Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the number of buy-to-let properties that have been sold in the last 12 months, and how this compares with the previous 12 months.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
According to UK Finance’s latest quarterly Buy-to-Let statistical release (published 22 October), in Q2 2024 there were 51,459 new buy-to-let loans advanced in the UK, worth £8.9 billion. This was up 26% by number (27.7% by value) compared with the same quarter in the previous year.
There is a wide variety of data and statistics about the mortgage market in the UK available from the Bank of England [1] , the Financial Conduct Authority [2] and UK Finance [3].
[1] https://www.bankofengland.co.uk/statistics
[2] https://www.fca.org.uk/data
[3] https://www.ukfinance.org.uk/data-and-research/data
Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the number of buy-to-let mortgages that have been issued in the last 12 months, and how this compares with the previous 12 months.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
According to UK Finance’s latest quarterly Buy-to-Let statistical release (published 22 October), in Q2 2024 there were 51,459 new buy-to-let loans advanced in the UK, worth £8.9 billion. This was up 26% by number (27.7% by value) compared with the same quarter in the previous year.
There is a wide variety of data and statistics about the mortgage market in the UK available from the Bank of England [1] , the Financial Conduct Authority [2] and UK Finance [3].
[1] https://www.bankofengland.co.uk/statistics
[2] https://www.fca.org.uk/data
[3] https://www.ukfinance.org.uk/data-and-research/data
Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether they have any plans to restore VAT free shopping for foreign tourists.
Answered by Baroness Vere of Norbiton
As set out at Spring Budget 2024, the government is considering the findings of the Office for Budget Responsibility’s review of the original costing of the withdrawal of tax-free shopping, published in the Economic and Fiscal Outlook on 6 March, alongside industry representations and broader data. The Government welcomes further submissions from stakeholders in response to the OBR’s findings. All taxes are kept under review.
Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what consideration they have given to implementing a windfall tax on the excess profits of UK banks.
Answered by Baroness Vere of Norbiton
Banks already face an additional rate of tax on their profits in the form of the Bank Corporation Tax Surcharge – meaning they pay 3 percentage points more on their profits (28%) than most other businesses (25%). This is in addition to a charge on the largest banks’ balance sheets in the form of the Bank Levy.
Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of whether banks charge fair and reasonable arrangement fees, and of the impact of such fees, combined with restrictive affordability criteria on the affordability of consumer mortgages.
Answered by Baroness Penn
The availability and pricing of mortgages, including arrangement fees, is a commercial decision for lenders in which the Government does not intervene.
It is important for both lenders and consumers that proper checks are carried out to ensure that borrowers will be well placed to repay the mortgage. Since April 2014 all lenders must now conduct an affordability assessment, which includes a robust income and expenditure analysis that will include a consideration of other debts owed. Lenders must also obtain evidence of that income to support this assessment.
The Government remains committed to making the aspiration of homeownership a reality for as many households as possible.
We operate a range of schemes that aim to increase the supply of low-deposit mortgages for credit-worthy households, including first-time buyers, increase the availability of new housing, and stimulate economic growth. These include the Mortgage Guarantee Scheme, which is open until the end of 2023, as well as First Homes and Shared Ownership through the Affordable Homes Programme. The Government also helps first-time buyers to save for a deposit through the Lifetime ISA and Help to Buy: ISA.
Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, further to the Written Answer by Baroness Penn on 22 February (HL5634), how much it would cost the taxpayer to equalise the VAT rate for public charging (20 per cent) and home charging (5 per cent) for electric vehicles.
Answered by Baroness Penn
As noted in the Written Answer of 22 February, the Government has no plans to change the VAT treatment of EV charging.
The practical challenges of differentiating between the electricity used at home for general domestic purposes and the electricity used to charge electric vehicles (EVs) currently means that the reduced rate VAT relief for supplies of domestic energy is effectively being applied to EV charging at home. Given those practical challenges the Government has not estimated the additional cost to taxpayers from increasing the rate of VAT applied to home EV charging.
The fiscal cost of introducing a new relief, to reduce the rate of VAT applied to public charging, would likely depend on a range of factors including the level of EV take-up, driver behaviour and the comparative energy costs for home and public charging, which can vary significantly. Introducing such relief would likely have a large fiscal cost, which would grow over time as use of EVs increases.
Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, what plans they have to tax UK businesses, aside from the private rented housing sector, on turnover rather than profits.
Answered by Baroness Penn
The Government acknowledges the potential challenges and distortions that can arise from revenue-based taxes, and it does not currently plan to introduce another revenue-based tax.
The UK has introduced a 2 per cent tax on the revenues derived from providing a social media platform, search engine or online marketplace to UK users: the Digital Services Tax (DST). However, the UK’s DST is an interim solution to widely held concerns with international corporate tax.
The Government has introduced the Electricity Generator Levy (EGL) – a temporary 45% additional levy on extraordinary returns from 1 January 2023. It applies to generation from renewable (including biomass), nuclear and energy from waste sources. The EGL applies to revenues from selling electricity for a period above a benchmark price, which is set at approximately 50% more than the average price of electricity over the last decade.
The Government has introduced a number of measures to ensure that large multinational businesses with entities in a number of jurisdictions pay their fair share of Corporation Tax in the UK. These include introducing the Diverted Profits Tax in April 2015 and the Corporate Interest Restriction Rules in 2017, which are designed to prevent profits attributable to UK activities from being shifted overseas.
The Government keeps the tax system under constant review.
Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether they have any plans to equalise the VAT rate for public charging (20 per cent) and home charging (5 per cent) for electric vehicles.
Answered by Baroness Penn
There are no current plans to change the VAT treatment of electric vehicle charging. However, the Government is committed to supporting the transition to zero emission vehicles to help the UK meet its net-zero obligations. The Government has committed £2.5 billion since 2020 to support the transition to zero emission vehicles, which funds targeted vehicle grants and the rollout of charging infrastructure.Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what steps they are taking to reduce waiting times for taxpayers seeking to access HMRC’s telephone helpline.
Answered by Baroness Penn
We encourage these taxpayers who can contact us digitally to do, so that our staff can focus their support on those who need one-to-one support on the telephone.
The quickest and easiest way for customers to manage their tax affairs and get answers to queries is online through the HMRC mobile app or the web-based Personal Tax Account here https://www.gov.uk/personal-tax-account, which enables taxpayers to view all their tax affairs in one place and complete everyday tasks. We continue to invest in high quality digital services which will allow HMRC to offer a more efficient service. When more customers use our online services, this frees up our advisers to offer a better service for those customers who have more complex queries or are unable to go online.
January is the busiest time of the year on HMRC’s telephony lines due to the Self-Assessment peak. To ensure that Self-Assessment customers can get the help they need during this period, HMRC has redeployed 850 colleagues from other areas to enable us to focus on the highest priority Self-Assessment calls.
Asked by: Lord Truscott (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what plans they have, if any, to review the role of the tax system in meeting the demand for rental homes in the private rented sector.
Answered by Lord Harlech
The Government keeps all tax policy, including that affecting the private rented sector, under review.
The Government has increased the nil-rate threshold of Stamp Duty Land Tax from £125,000 to £250,000 to support the property market until March 2025 and remains committed to supporting the rental market.
The Levelling Up and Regeneration Bill currently before parliament also contains provisions to increase Council Tax on second and empty homes.
Ensuring a fair deal for renters remains a priority for this government.