Furnished Holiday Lettings: Taxation
Debate between Alistair Carmichael and Nigel Huddleston(7 months, 3 weeks ago)
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Nigel Huddleston
I thank my hon. Friend for that point, which she has raised with me previously. I should put on the record that many hon. Members in the Chamber have raised concerns about the implementation of this proposal with me. The challenge is that one of the goals is simplification, and when we start moving into the area of carve-outs and exemptions, it opens up the system to challenges and potential abuse. I hear what my hon. Friend has to say. She will always hear from Ministers that we keep tax policy under review, but as soon as we start moving to an exemption here and an exemption there, it causes great difficulties. I also thank PASC for its constructive engagement with me on this issue and for giving me information.
I have had lots of correspondence and have engaged with colleagues, and I want to make this very clear. There is a belief that when we said we were abolishing the FHL tax regime, that meant we were abolishing FHLs. No, of course we are not. As I said, they play a vital role in the visitor economy, but we want to change the tax policy. The intention is for the tax reform to apply to all properties.
There will continue to be benefits. After the abolition of the FHL tax regime, a higher rate paying landlord with mortgage interest costs of £12,000 per year would still get up to £2,400 taken off their income tax bill through the relief. If they spend a further £8,000—for example, on insurance, letting agent fees and replacing domestic items such as sofas, fridges, washing machines—they could save a further £3,200 in income tax by using the reliefs that are available for all landlords. It is about levelling the playing field. There will still be tax incentives, but we do not want that distortion. When somebody buys a new property or an existing property, there is a false incentive that is causing some problems, because human behaviour that naturally seeks a better return on investment leads them towards short-term lets, rather than long-term lets. That is what we are trying to correct.
Mr Carmichael
On a point of order, Dame Siobhain. When I intervened, I should have pointed out that I have a declarable interest registered. I apologise to the Chamber for not doing so at the time and I hope the position is now clarified.
HMRC Self-Assessment Helpline
Debate between Alistair Carmichael and Nigel Huddleston(9 months ago)
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Mr Alistair Carmichael (Orkney and Shetland) (LD)
The reprieve is welcome, but if we are to keep these helplines open, can we at least resource them properly and make them work? I spoke to a chartered accountant in my constituency this morning, and he tells me that when he recently phoned HMRC with a complex query on behalf of a client, it took 40 minutes to get an answer. When the phone was answered, there was an acknowledgment of the problem. He suggested that the answer might lie in his client’s wife’s data being incorrectly ordered, at which point he was told that the staff were allowed to handle only one case per call, and that he would have to hang up and phone back, with another 40-minute wait for an answer. Surely that is no way to treat a customer.
Nigel Huddleston
I thank the right hon. Gentleman for raising that point, and I am happy to raise it with HMRC.
Oral Answers to Questions
Debate between Alistair Carmichael and Nigel Huddleston(1 year, 7 months ago)
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Mr Alistair Carmichael (Orkney and Shetland) (LD)
What are the Government doing to ensure that the genomics data of British businesses held by British genomics companies that then trade or do deals with Chinese companies, such as BGI Genomics, is protected? Is it not somewhat naive, given the terms of the national security law, to think that GDPR alone is sufficient protection?
Nigel Huddleston
Through a variety of mechanisms and across multiple Departments, the Government give advice to companies investing overseas. In terms of dynamics the other way around, the Investment Security Unit carefully analyses investment in the UK, particularly relating to acquisitions in 17 sensitive areas. We are very careful at analysing and we will continue to keep a close eye on those two-way relationships.