Asked by: Andrew Snowden (Conservative - Fylde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an estimate of the revenue from applying VAT to independent schools in Fylde constituency in the next financial year.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government does not have an estimate of the revenue from this measure specifically from the Fylde constituency.
At the Autumn Budget the Government published a detailed response to the consultation conducted between July and September. Annexed to this is the costing methodology used to calculate the total revenue generated by this policy. Included is a breakdown of the exchequer impact by year, including 2025/26. This was published online and can be found here: https://assets.publishing.service.gov.uk/media/6734864af6920bfb5abc7a29/Government_Response_to_the_Technical_Note_on_Applying_VAT_to_Private_School_Fees_and_Removing_the_Business_Rates_Charitable_Rate_Relief.pdf
Asked by: Andrew Snowden (Conservative - Fylde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an estimate of the revenue from applying business rates to independent schools in Fylde constituency in the next financial year.
Answered by James Murray - Exchequer Secretary (HM Treasury)
At Autumn Budget 2024, the Government reconfirmed that it is removing private schools’ eligibility for charitable rate relief under business rates in England from April 2025. This intervention will raise around £140 million per year.
Business rates retention means that local authorities retain a proportion of all business rates revenue. As such, the increase in rates receipts due to the reduction in charitable rate relief for private schools will be shared between central and local government.
Asked by: Andrew Snowden (Conservative - Fylde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of increased long term gilt rates on Government borrowing costs.
Answered by Darren Jones - Chief Secretary to the Treasury
The government does not comment on specific financial market movements. Gilt yields are determined by a wide range of international and domestic factors, and it is normal for the price and yields of gilts to vary when there are wider movements in global financial markets.
The Chancellor has commissioned the Office for Budget Responsibility for an updated economic and fiscal forecast for the 26th of March, which will incorporate the latest data.
Asked by: Andrew Snowden (Conservative - Fylde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of exempting (a) the Royal National Lifeboat Institution and (b) other voluntary lifesaving services from the changes made to employers' National Insurance contributions at the Autumn Budget 2024.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government recognises the important role charities play in our society and has made it a priority to reset the relationship with civil society by developing a Civil Society Covenant.
To repair the public finances and help raise the revenue required to increase funding for public services, the government has taken the difficult decision to increase employer National Insurance.
The Government recognises the need to protect the smallest businesses and charities, which is why we have more than doubled the Employment Allowance to £10,500, meaning more than half of employers with NICs liabilities either gain or see no change next year. Charities will still be able to claim employer NICs reliefs including those for under 21s and under 25 apprentices, where eligible.
More broadly, within the tax system, we provide support to charities through a range of reliefs and exemptions, including reliefs for charitable giving., with more than £6 billion in charitable reliefs provided to charities, CASCs and their donors in 2023 to 2024.
Asked by: Andrew Snowden (Conservative - Fylde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if her Department will issue guidance on whether film and television productions that use generative artificial intelligence qualify for (a) the Independent Film Tax Credit and (b) rate relief for VFX spend.
Answered by James Murray - Exchequer Secretary (HM Treasury)
From 1 April 2025, films with a UK lead writer or director and budgets of under £15 million will be able to claim an enhanced 53% rate of Audio-Visual Expenditure Credit (AVEC), known as the Independent Film Tax Credit (IFTC). Generative artificial intelligence costs are not excluded from the IFTC. Costs that qualify for the IFTC will be the same costs that currently qualify for the normal rate of AVEC. Guidance can be accessed here: https://www.gov.uk/guidance/claim-audio-visual-expenditure-credits-for-corporation-tax.
From 1 April 2025, film and high-end TV companies may claim an enhanced AVEC rate of 39% on their UK visual effects costs. UK visual effects costs will be exempt from the AVEC’s 80% cap on qualifying expenditure. Generative artificial intelligence costs are not excluded from the additional tax relief for visual effects. Further information on the costs that will qualify for the additional tax relief can be found in the Government’s response to its consultation on the design of the policy, and can be accessed here: https://www.gov.uk/government/consultations/consultation-on-additional-tax-relief-for-visual-effects-costs.
HMRC will publish specific guidance on the additional tax relief for visual effects in due course.
Asked by: Andrew Snowden (Conservative - Fylde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of proposed increases in employer's national insurance contributions on future trends in the cost to the public purse of Government contracts with private sector companies.
Answered by James Murray - Exchequer Secretary (HM Treasury)
At the Autumn Budget, the Chancellor announced that the rate of Employer National Insurance contributions will increase from 13.8% to 15% from 6 April 2025. In order to raise the revenue required to fund public services and restore economic stability, difficult decisions need to be taken on tax, which is why the Government is asking employers to contribute more.
The Chancellor also set out, at the Autumn Budget, the departmental spending allocations for 2024-25 and 2025-26. Departmental allocations for future years will be set out at the next phase of the Spending Review. The responsibility for prioritising these budgets effectively and making assessments on the costs of procurement rests with contracting authorities.
Asked by: Andrew Snowden (Conservative - Fylde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to paragraph 2.51 of the Autumn Budget 2024, published on 30 October 2024, what guidance her Department issues to small business farmers who wish to keep an inherited family farm.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government has published information about the reforms to agricultural property relief at https://www.gov.uk/government/news/what-are-the-changes-to-agricultural-property-relief#:~:text=From%206%20April%202026%2C%20the,rather%20than%20the%20standard%2040%25. Almost three-quarters of estates claiming agricultural property relief in 2026-27 are expected to be unaffected by these reforms.
Individuals can pass up to £325,000 inheritance tax free, and £500,000 if includes a residence to a direct descendant, and £1m when a tax free allowance is passed to a surviving spouse or civil partner.
The reforms to agricultural property relief and business property relief mean that farmers can access 100% relief for the first £1 million and 50% relief thereafter - meaning an effective tax rate of up to 20% on those assets. These reliefs are in addition to the normal inheritance tax allowances, and mean any couple, whether or not married, could pass on up to £1.5 million each or £3 million tax-free between them.
Individuals will need to consider their own circumstances and may wish to speak to a tax advisor or accountant.