Asked by: Ben Coleman (Labour - Chelsea and Fulham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact on small and medium-sized wine traders of the introduction of a tax-by-strength alcohol excise duty regime within one year.
Answered by James Murray - Exchequer Secretary (HM Treasury)
In August 2023 the Government introduced reforms to alcohol duty so that products are taxed in proportion to their alcoholic strength, not volume.
To help the wine industry adapt to the new duty system, the temporary duty easement was introduced as a transitional measure, which was intended to allow time for wine producers to adapt to calculating duty based on alcohol by volume.
Whilst the new system of wine labelling allows product labelling to 0.1 per cent ABV, this is optional, and wine can still be labelled to the nearest 0.5 per cent ABV.
By the planned end-date of 31 January 2025, the wine industry will have had over two years to adapt to the new strength-based system.
Asked by: Ben Coleman (Labour - Chelsea and Fulham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if her Department will make an estimate of the administrative cost to wine sellers of the an alcohol excise duty regime based on taxing wine by strength.
Answered by James Murray - Exchequer Secretary (HM Treasury)
In August 2023 the Government introduced reforms to alcohol duty so that products are taxed in proportion to their alcoholic strength, not volume.
To help the wine industry adapt to the new duty system, the temporary duty easement was introduced as a transitional measure, which was intended to allow time for wine producers to adapt to calculating duty based on alcohol by volume.
Whilst the new system of wine labelling allows product labelling to 0.1 per cent ABV, this is optional, and wine can still be labelled to the nearest 0.5 per cent ABV.
By the planned end-date of 31 January 2025, the wine industry will have had over two years to adapt to the new strength-based system.
Asked by: Ben Coleman (Labour - Chelsea and Fulham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of a separate duty charge for wine for each 0.1% of ABV.
Answered by James Murray - Exchequer Secretary (HM Treasury)
In August 2023 the Government introduced reforms to alcohol duty so that products are taxed in proportion to their alcoholic strength, not volume.
To help the wine industry adapt to the new duty system, the temporary duty easement was introduced as a transitional measure, which was intended to allow time for wine producers to adapt to calculating duty based on alcohol by volume.
Whilst the new system of wine labelling allows product labelling to 0.1 per cent ABV, this is optional, and wine can still be labelled to the nearest 0.5 per cent ABV.
By the planned end-date of 31 January 2025, the wine industry will have had over two years to adapt to the new strength-based system.
Asked by: Ben Coleman (Labour - Chelsea and Fulham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will commission research into the potential impact of the (a) property price limit and (b) exit penalty on first-time buyers who wish to use Lifetime ISAs to buy a property.
Answered by Tulip Siddiq
Data from the latest UK House Price Index demonstrates that the average price paid by first-time buyers remains below the LISA property price cap in all regions of the UK.
Any unauthorised withdrawals are subject to a 25% withdrawal charge. This recoups the Government bonus, any interest or growth arising from it, and a proportion of the individual’s initial savings. HMRC is currently undertaking social research on the LISA with existing account holders and those who are eligible but have not opened a LISA.
HMRC commits to publishing all research in their Annual Report and Accounts. The findings from all strands of research on the LISA will be published in due course.
The Government keeps all aspects of savings tax policy under review.
Asked by: Ben Coleman (Labour - Chelsea and Fulham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will (a) increase the Lifetime ISA property value limit and (b) reduce the early access penalty for Lifetime ISAs at the next Budget.
Answered by Tulip Siddiq
Data from the latest UK House Price Index demonstrates that the average price paid by first-time buyers remains below the LISA property price cap in all regions of the UK.
Any unauthorised withdrawals are subject to a 25% withdrawal charge. This recoups the Government bonus, any interest or growth arising from it, and a proportion of the individual’s initial savings. HMRC is currently undertaking social research on the LISA with existing account holders and those who are eligible but have not opened a LISA.
HMRC commits to publishing all research in their Annual Report and Accounts. The findings from all strands of research on the LISA will be published in due course.
The Government keeps all aspects of savings tax policy under review.