Asked by: Anthony Mangnall (Conservative - Totnes)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of introducing VAT exemption for not-for-profit organisations who provide welfare services to dementia sufferers.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
VAT has been designed as a broad-based tax on consumption, and the twenty per cent standard rate applies to most goods and services. Whilst there are exceptions to the standard rate, these have always been strictly limited by both legal and fiscal considerations.
Welfare services provided by local authorities and similar bodies and charities are exempt from VAT, meaning no VAT is charged to the final consumer.
Welfare services provided by state regulated private welfare institutions are also exempt from VAT. State regulated suppliers are those that are registered with the Care Quality Commission, and are eligible for the VAT exemption where they are providing services that are state regulated.
The regulation requirement ensures that VAT relief is limited to providers certified as offering safe and high-quality welfare services. This is a long-standing requirement, and there are no plans to make changes to these rules.
Asked by: Anthony Mangnall (Conservative - Totnes)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of extending the Insurance Premium Tax exemption to lifeboat services that operate on inland waterways, lakes and reservoirs.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
IPT is forecast to raise £8 billion in 2023/24 and this revenue helps to fund vital public services including the NHS and social care.
Insurance pricing is a decision which is affected by a wide range of factors, and the taxes that insurers pay are just one part of this. It is hard to predict the impact of an IPT reduction on inland lifeboats pricing because this largely depends on how the insurers react.
The government keeps all tax policy under review