Asked by: Andrew Bowie (Conservative - West Aberdeenshire and Kincardine)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of the revenue which would be accrued from applying Duty Free allowances to people departing from Great Britain to the European Union.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Allowances are generally not applied to outbound passengers. Instead, goods will be taxed upon arrival in the destination country (subject to any duty free allowances available in that country).
Inbound passengers to the UK are usually entitled to duty free allowances, which allow them to bring in goods up to certain limits without paying UK taxes, providing they are for personal use or to be gifted. Details of those allowances can be found here:
https://www.gov.uk/bringing-goods-into-uk-personal-use/arriving-in-Great-Britain
Asked by: Andrew Bowie (Conservative - West Aberdeenshire and Kincardine)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of applying the duty-free allowance to people departing from Great Britain to the European Union.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Allowances are generally not applied to outbound passengers. Instead, goods will be taxed upon arrival in the destination country (subject to any duty free allowances available in that country).
Inbound passengers to the UK are usually entitled to duty free allowances, which allow them to bring in goods up to certain limits without paying UK taxes, providing they are for personal use or to be gifted. Details of those allowances can be found here:
https://www.gov.uk/bringing-goods-into-uk-personal-use/arriving-in-Great-Britain
Asked by: Andrew Bowie (Conservative - West Aberdeenshire and Kincardine)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential merits of allowing duty free purchases to be made on landing in Great Britain.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Current duty-free policy avoids large quantities of untaxed goods entering the UK market, while reducing operational burdens at the border and supporting wider health objectives.
The Government keeps all taxes under review as part of the policy making process.
Asked by: Andrew Bowie (Conservative - West Aberdeenshire and Kincardine)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the impact of changes to Agricultural Property Relief on Scottish farms.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government published information about the reforms to agricultural property relief at www.gov.uk/government/publications/agricultural-property-relief-and-business-property-relief-reforms.
It is expected that up to around 2,000 estates will be affected by the changes to APR and BPR in 2026-27, with around half of those being claims that involve AIM shares. Almost three-quarters of estates claiming agricultural property relief (or those claiming agricultural property relief and business property relief together) are expected to be unaffected by these reforms.
In accordance with standard practice, a tax information and impact note will be published alongside the draft legislation before the relevant Finance Bill.
Asked by: Andrew Bowie (Conservative - West Aberdeenshire and Kincardine)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had with the National Farmers Union of Scotland on changes to Agricultural Property Relief in the Autumn Budget 2024 since 30 October 2024.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government published information about the reforms to agricultural property relief and business property relief at www.gov.uk/government/publications/agricultural-property-relief-and-business-property-relief-reforms.
The Government takes into account all representations, and HM Treasury officials and Ministers meet with stakeholders on a regular basis.
Asked by: Andrew Bowie (Conservative - West Aberdeenshire and Kincardine)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had with the Convention of Scottish Local Authorities on increases to Employers' National Insurance contributions in the Autumn Budget.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government takes into account all representations made ahead of the Budget, and meets with stakeholders on a regular basis, including officials and ministers from the Scottish Government.
Funding for local authorities in Scotland, including support for additional employer National Insurance Contribution (NICs) costs falls under the devolved responsibilities of the Scottish Government.
At Autumn Budget 2024, we set aside funding for public sector employers for additional NICs costs. This includes funding for the Scottish Government through the usual application of the Barnett formula.
Funding resulting from the employer NICs policy change will be in addition to the £47.7 billion the Scottish Government is receiving in 2025-26, which already includes an additional £3.4 billion through the operation of the Barnett formula. This settlement is the largest in real terms since devolution.
Decisions on devolved priorities, including local authority funding, are a matter for the Scottish Government. It is for the Scottish Government to determine how to allocate its budget across devolved areas and it is accountable to Scottish Parliament for these decisions.
Asked by: Andrew Bowie (Conservative - West Aberdeenshire and Kincardine)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had with Aberdeenshire Council on increases in Employers National Insurance contributions in the Autumn Budget.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government takes into account all representations made ahead of the Budget, and meets with stakeholders on a regular basis, including officials and ministers from the Scottish Government.
Funding for local authorities in Scotland, including support for additional employer National Insurance Contribution (NICs) costs falls under the devolved responsibilities of the Scottish Government.
At Autumn Budget 2024, we set aside funding for public sector employers for additional NICs costs. This includes funding for the Scottish Government through the usual application of the Barnett formula.
Funding resulting from the employer NICs policy change will be in addition to the £47.7 billion the Scottish Government is receiving in 2025-26, which already includes an additional £3.4 billion through the operation of the Barnett formula. This settlement is the largest in real terms since devolution.
Decisions on devolved priorities, including local authority funding, are a matter for the Scottish Government. It is for the Scottish Government to determine how to allocate its budget across devolved areas and it is accountable to Scottish Parliament for these decisions.
Asked by: Andrew Bowie (Conservative - West Aberdeenshire and Kincardine)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when she plans to convene the next Oil and Gas Fiscal Forum.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The government is committed to maintaining an open and constructive dialogue with the oil and gas sector to support our energy security and ensure the sector plays its role in our clean energy ambitions.
In line with this I will chair the next Oil and Gas Fiscal Forum in the first quarter of this year.
Asked by: Andrew Bowie (Conservative - West Aberdeenshire and Kincardine)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential impact of proposed changes to Air Passenger Duty on Inverness Airport.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Air Passenger Duty (APD) applies to airlines and is the principal tax on the aviation sector. It is expected to raise £4.2 billion in 2024-25 and it aims to ensure that airlines make a fair contribution to the public finances, particularly given that tickets are VAT free and aviation fuel incurs no duty.
At Autumn Budget 2024, the Government announced Air Passenger Duty (APD) rates for 2026-27, including a partial adjustment to help compensate for two recent years of inflation that was higher than expected. APD rates are set in advance using forecasts of inflation, and so with actual inflation being significantly greater than forecast in 2022 and 2023, APD rates fell in real terms. To help account for this and to ensure that the aviation industry continues to make a fair contribution to the public finances, the Government announced an adjustment to the APD rates for 2026-27.
For economy class passengers, the rate increases are: £1 for domestic flights; £2 for short-haul international flights; and £12 for long-haul and ultra-long-haul international flights.
The Government published a Tax Information and Impact Notice, which outlined the expected impacts of the APD changes. It is available at: https://www.gov.uk/government/publications/changes-to-air-passenger-duty-rates-from-1-april-2026/air-passenger-duty-rates-from-1-april-2026-to-31-march-2027
Passengers carried on flights leaving from airports in the Scottish Highlands and Islands region, such as Sumburgh Airport, are exempt from APD. This exemption is set out at: https://www.gov.uk/guidance/exemptions-from-air-passenger-duty
Asked by: Andrew Bowie (Conservative - West Aberdeenshire and Kincardine)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential impact of proposed changes to Air Passenger Duty on Edinburgh Airport.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Air Passenger Duty (APD) applies to airlines and is the principal tax on the aviation sector. It is expected to raise £4.2 billion in 2024-25 and it aims to ensure that airlines make a fair contribution to the public finances, particularly given that tickets are VAT free and aviation fuel incurs no duty.
At Autumn Budget 2024, the Government announced Air Passenger Duty (APD) rates for 2026-27, including a partial adjustment to help compensate for two recent years of inflation that was higher than expected. APD rates are set in advance using forecasts of inflation, and so with actual inflation being significantly greater than forecast in 2022 and 2023, APD rates fell in real terms. To help account for this and to ensure that the aviation industry continues to make a fair contribution to the public finances, the Government announced an adjustment to the APD rates for 2026-27.
For economy class passengers, the rate increases are: £1 for domestic flights; £2 for short-haul international flights; and £12 for long-haul and ultra-long-haul international flights.
The Government published a Tax Information and Impact Notice, which outlined the expected impacts of the APD changes. It is available at: https://www.gov.uk/government/publications/changes-to-air-passenger-duty-rates-from-1-april-2026/air-passenger-duty-rates-from-1-april-2026-to-31-march-2027
Passengers carried on flights leaving from airports in the Scottish Highlands and Islands region, such as Sumburgh Airport, are exempt from APD. This exemption is set out at: https://www.gov.uk/guidance/exemptions-from-air-passenger-duty