Asked by: Christopher Chope (Conservative - Christchurch)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many public sector exit payments were made in excess of £95,000 in the financial years ending 31 March (a) 2017, (b) 2018, (c) 2019, (d) 2020, (e) 2021, (f) 2022 and (g) 2023; and what the total cost was of those payments in each of those years.
Answered by Laura Trott - Shadow Secretary of State for Education
information on the number and costs of exit payments over £100,00 is published in the Whole of Government Accounts.
Asked by: Christopher Chope (Conservative - Christchurch)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make representations to the Royal Bank of Scotland on its refusal to approve a credit card for the British-American Parliamentary Group on the grounds that the three signatories on the group's bank account are hon. Members who are deemed to be politically exposed persons; and if he will make a statement.
Answered by Andrew Griffith - Shadow Secretary of State for Business and Trade
The issue of Politically Exposed Persons’ (PEPs) access to essential banking services is one that we are taking extremely seriously. The case the Hon Member raises sounds concerning.
The Government’s position is clear that financial institutions’ must not deny services to PEP customers solely on the basis of their PEP status. The recently passed Financial Services and Markets Act 2023 commits the Financial Conduct Authority (FCA) to conduct a review into financial institutions’ adherence to their guidance on PEPs, and the appropriateness of that guidance, within twelve months of Royal Assent. This review will assess the extent to which lower-risk PEPs are being denied access to services in an inappropriate and disproportionate manner, and the FCA will take action where it identifies serious failures.
The Government has also taken action through the Financial Services and Markets Act to commit the Treasury to amend the Money Laundering Regulations to explicitly distinguish between domestic and non-domestic PEPs in law. This amendment will make clear that, in the absence of other high-risk factors, domestic PEPs must be treated as lower risk than non-domestic PEPs and have a lesser degree of enhanced due diligence applied to them.
Earlier this month, I wrote to the FCA to underline the importance of the FCA’s review and make clear that the Government expects it to be prioritised over the coming months. I am clear that the FCA’s review and the Government’s amendment to the Regulations should lead to a more proportionate and appropriate treatment of PEPs in future.
My Treasury colleague, Baroness Penn, has also written to the FCA to emphasise the Government’s expectation that their review should consider to what extent financial institutions are taking a blanket approach and refusing to offer services to customers solely due to their PEP status.
Asked by: Christopher Chope (Conservative - Christchurch)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, for what reason HMRC has not provided a substantive response to the letter from the Hon. Member for Christchurch dated 18th April, HMRC Ref 0013913 PSA.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
The correspondence of 18 April 2023 was redirected by HM Treasury to HM Revenue & Customs (HMRC) on 19 April 2023.
HMRC replied to the Hon Member on 12 May and 19 May 2023 to provide updates and to advise that they are unable to provide a substantive response until their investigations into the complaint have been completed.
HMRC will contact the member again when these investigations have been completed.
Asked by: Christopher Chope (Conservative - Christchurch)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, for what reason HMRC does not permit complaints against it to be made by email.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
The main risks associated with using email that concern HMRC are:
Asked by: Christopher Chope (Conservative - Christchurch)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 30 November 2022 to Question 96553 on Duty Free Allowances, if he will publish the evidence which demonstrates that the introduction of arrivals duty free shopping in the UK would have a different impact from that experienced in Norway and Switzerland.
Answered by James Cartlidge - Shadow Secretary of State for Defence
As mentioned in the answer to Question 96553, duty-free on arrival, which would apply to inbound passengers, would place additional pressure on the public finances to which excise duty makes a significant contribution.
Although there are no plans to introduce such a scheme, the Government keeps all taxes under review and considers all available evidence as part of the tax-policy making cycle.
Asked by: Christopher Chope (Conservative - Christchurch)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 18 November 2022 to Question 87732 on Duty Free Allowances, what assessment he has made of the implications for his policies of evidence from Norway and Switzerland of the impact of the introduction of arrivals duty stores in those countries; and if he will commission a cost benefit analysis of such a policy being applied in the UK.
Answered by James Cartlidge - Shadow Secretary of State for Defence
As mentioned in the answer to Question 87732, duty-free on arrival, which would apply to inbound passengers, could undermine the UK high street and run counter to public health objectives. Any new tax relief will also impose additional pressure on the public finances, to which excise duty makes a significant contribution. Any loss in tax revenue would have to be balanced by a reduction in public spending, increased borrowing or increased taxation elsewhere.
Although there are no plans to introduce such a scheme, the government keeps all taxes under review.
Asked by: Christopher Chope (Conservative - Christchurch)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what safeguards his Department has implemented to ensure that companies who act as tax agents have the full and informed consent of the taxpayers on whose behalf they accept rebates; how many payments his Department has made in the last three months to Ensign Advisory Ltd; and whether companies acting as tax agents are authorised to deduct a fee from a rebate they receive before passing it on to the taxpayer on whose behalf they act.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
Individuals can claim tax repayments from HMRC and HMRC will refund them directly. However, HMRC will issue a tax repayment to a third party when a taxpayer has either nominated or assigned the repayment to them.
Companies which specialize in claiming tax refunds often use assignments as part of the sign-up process, which means the repayment then legally belongs to that agent. When a taxpayer signs an assignment, HMRC is obliged to make payment directly to the repayment agent. Repayment agents may deduct a fee from the repayment before they forward the repayment to their client. This will be set out in their terms and conditions.
When a customer has used a repayment agent and has an assignment in place, HMRC completes essential checks to satisfy that the assignment is valid. HMRC takes firm action against any agent who does not comply with the law.
HMRC launched the “Raising standards in tax advice: protecting customers claiming tax repayments” consultation on 22 June 2022. The consultation sought views on restricting the use of assignments for tax repayments, and introducing measures designed to ensure taxpayers see material information about a repayment agent’s service before entering into a contractual agreement.
The consultation ran for 12 weeks and closed on 14 September 2022. We will publish a summary of responses in due course.
The Autumn Statement announced changes to Research & Development relief from 1 April 2023, reducing the risk of abuse. The new requirement for claimants to provide additional information with their claim includes providing details of any agent involved with the claim.
HMRC does not comment on identifiable businesses due to strict confidentiality rules.
Asked by: Christopher Chope (Conservative - Christchurch)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if his Department has made an assessment of the potential merits of the creation of arrivals duty free stores at airports and ferry terminals across the UK to serve inbound passengers; and if he will make a statement.
Answered by James Cartlidge - Shadow Secretary of State for Defence
Following a consultation, the Government announced on 11 September 2020 that duty-free sales on departure would be extended to EU-bound passengers for the first time in over 20 years from 1 January 2021. This is a significant boost to all airports and international rail terminals in England, Scotland and Wales, including Bournemouth, and smaller regional airports and rail hubs, which have not been able to offer duty-free to the EU before.
The Government would need to consider the cost of introducing a duty-free on arrival scheme. Any new tax relief will impose additional pressure on the public finances, to which excise duty makes a significant contribution. Any loss in tax revenue would have to be balanced by a reduction in public spending, increased borrowing or increased taxation elsewhere.
Asked by: Christopher Chope (Conservative - Christchurch)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when the level of income-tax exemption for foster carers was last revised in respect of care allowances; and if he will make a new adjustment to take account of the rising level of foster care allowances.
Answered by Lucy Frazer
Qualifying Care Relief (QCR) is a tax relief available to support foster carers, in addition to some other carers. QCR was first introduced as Foster Care Relief in 2003-04. This allowance is £10,000 per household per year, plus £250 per week per adult or child aged 11 or over (£200 for a child under 11).
It is important to consider that the QCR operates in addition to other reliefs and allowances. Foster carers are also entitled to the Personal Allowance, which may be available to cover any foster care income above the QCR allowance. The Government has increased the Personal Allowance (PA) by over 40 per cent in real terms since 2010, ensuring some of the lowest earners do not pay income tax. The PA is the highest basic personal tax allowance of all countries in the G20, and it remains one of the most generous internationally.
The Government keeps all aspects of the tax system under review.