Asked by: Derek Thomas (Conservative - St Ives)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to paragraph 6.48ff of the report by the Office for Tax Simplification entitled Property income review: simplifying income tax for residential landlords, published on 25 October 2022, whether his Department has made an assessment of the potential merits of introducing a brightline test to provide tax reliefs where property letting activities subject to income tax would qualify as a trade.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
The suggestion by the Office for Tax Simplification (OTS) for a brightline test would create an arbitrary dividing line, and potential preferential tax treatment for those able to afford to buy more properties, as opposed to considering whether an activity constitutes trading or property letting on its merits. The OTS suggestions also had the effect that more activities would be considered trades. As a result the Government decided not to take that suggestion forward, but does keep all aspects of tax policy under review.
Asked by: Derek Thomas (Conservative - St Ives)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions his Department has had with the accountancy services sector on the enforcement of Managed Service Company legislation against chartered providers of accountancy services.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
HMRC officials have and continue to discuss the Managed Service Company rules with professional accountancy organisations, workers’ representative bodies and other tax professionals. HMRC officials in collaboration with stakeholders are exploring how HMRC’s guidance could be enhanced to enable taxpayers to understand whether certain services are Managed Service Company schemes.
Asked by: Derek Thomas (Conservative - St Ives)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to help ensure that companies have access to bank accounts.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
The Government recognises the vital role businesses play in fuelling economic growth, and it is important they can access the banking services they need. The decisions about what products are offered to individual businesses remain commercial decisions for banks and building societies.
The UK benefits from a very competitive environment for banking services, so there are a wide range of options available to businesses in need of a new bank account.
I would encourage businesses seeking a bank account to explore the Business Current Account finder tool developed by UK Finance, which was designed to help businesses compare the full range of bank accounts available and find products that best suit their needs. Businesses may also find it helpful to explore UK Finance’s online guidance on applying for a bank account to understand what is required by banks and why. My officials continue to engage with industry to understand any emerging issues regarding access to bank accounts.
Asked by: Derek Thomas (Conservative - St Ives)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of raising the threshold for the vehicle excise duty surcharge in line with vehicle price increases since 2015.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
The Vehicle Excise Duty surcharge is a supplement in addition to the standard rate of Vehicle Excise Duty, which is applied to cars with a list price of over £40,000. This surcharge is also known as the Expensive Car Supplement, and is payable for five years following the first registration of the vehicle, commencing in year two, with the final payment due in year six.
The £40,000 threshold was set as a suitable way of distinguishing the more luxury end of the new car market, meaning those who can afford the most expensive cars pay more than the standard rate paid by other drivers.
However, the Government recognises that transport is a major cost for individuals and families. That is why, at Spring Budget 2023, the Government announced it would maintain the rates of fuel duty at the levels set on 23 March 2022 for an additional 12 months, by extending the temporary 5p fuel duty cut and cancelling the planned inflation increase for 2023-24. That represents a saving of around £100 for the average car driver this year.
As with all taxes, the Government keeps the Expensive Car Supplement under review, and any changes will be announced at a future fiscal event.
Asked by: Derek Thomas (Conservative - St Ives)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the adequacy of the average time taken for HMRC to provide an inheritance tax reference number for the start of a probate process.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
HMRC prioritises requests for inheritance tax reference numbers and the follow up IHT400 forms submitted to set up an inheritance tax account.
Asked by: Derek Thomas (Conservative - St Ives)
Question to the HM Treasury:
To ask the Chancellor for the Exchequer, for what reason commercial laundries are excluded from retail, hospitality and leisure relief from business rates.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
Business rates are administered by local government and it is for local authorities to determine eligibility for reliefs, having regard to guidance issued by the Government.
Guidance setting out eligibility for the 2023-24 Retail, Hospitality and Leisure relief was published by the Department for Levelling Up, Housing and Communities and can be found at: https://www.gov.uk/government/publications/business-rates-relief-202324-retail-hospitality-and-leisure-scheme-local-authority-guidance
Asked by: Derek Thomas (Conservative - St Ives)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the cost to the public purse of waiving VAT on (a) defibrillators and (b) associated apparatus.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The cost of relieving VAT on defibrillators is uncertain owing to the lack of data on purchases of defibrillators and associated apparatus, and on purchasers who are able to reclaim the VAT on these purchases. Businesses are not required to provide information at a product level in their VAT returns, as this would impose an excessive administrative burden; HMRC does not therefore hold this data. All taxes are kept under review; any policy measure would be costed in the usual way.
The Government is currently inviting community organisations to bid for funding as part of a £1 million grant scheme that expands public access to AEDs, particularly in public places where they are most needed.
In addition, last year the Government committed to supplying state-funded schools in England with defibrillators to make sure there is a device in every school, with deliveries completed in June 2023. This means that every state-funded school in England, over 21,500 schools, now has access to an AED.
Asked by: Derek Thomas (Conservative - St Ives)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the adequacy of HMRC's (a) strategy for making and (b) capacity to make reasonable adjustments for service users with disabilities.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
HMRC’s Charter and Principles of support sets out the approach to providing access to its services, including providing reasonable adjustments to customers. The Charter Annual report outlines HMRC’s progress in meeting the Charter.
Additional HMRC guidance on making reasonable adjustments is in place to support this, and HMRC will support customers identified as needing extra help. HMRC has specialist teams that support those with disabilities or additional needs.
Asked by: Derek Thomas (Conservative - St Ives)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the adequacy of the average time taken for HMRC to refund VAT to companies which have deregistered.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
A deregistered company submits a form VAT427(Claim for input tax relief from VAT on cancellation of registration) to HMRC. On receipt of a correctly completed VAT427 form, on average HMRC takes 5 working days to issue a refund.
Asked by: Derek Thomas (Conservative - St Ives)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the adequacy of compliance with Air Passenger Duty by (a) private and (b) business jets.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
Private and business jets that meet certain criteria must register and account for air passenger duty (APD). APD is a self-assessed tax, and it is the responsibility of the aircraft operator to ensure they have accounted for the tax correctly. Smaller and infrequent flyers have the option to declare the tax via the Occasional Operator Scheme. HMRC undertakes a risk-based audit programme to ensure compliance from the aviation sector and has a range of penalties to deter non-compliance.