Asked by: Gary Sambrook (Conservative - Birmingham, Northfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to HMRC Manuals CG61800 and SDLTM25510, whether it is his Department's policy that those provisions will apply to the forthcoming boundary changes under the Parliamentary Constituencies Act 2020.
Answered by Lucy Frazer
Changes to parliamentary constituencies are made by an Order in Council under the Parliamentary Constituencies Act 1986. The Parliamentary Constituencies Act 2020 did not change this. This policy has not changed and the provisions in HMRC Manuals CG61800 and SDLTM235510 therefore still apply.Asked by: Gary Sambrook (Conservative - Birmingham, Northfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if his Department will make an assessment of the potential merits of amending section 71A of the Finance Act (2003) to include gradual homeownership.
Answered by John Glen
Section 71A of the Finance Act 2003 provides tax relief for financial institutions who purchase property which is subject to alternative financing arrangements. The rules prevent a double tax charge applying so that the tax outcome for purchasers is the same as if they had used conventional mortgage financing. The product referred to as ‘gradual homeownership’ uses arrangements which are not substantially similar to conventional mortgage financing and therefore the same requirements for relief are not present.
The Government keeps all tax policy under review.
Asked by: Gary Sambrook (Conservative - Birmingham, Northfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, for what reason people buying a home for the first time under the gradual homeownership model are not subject to first-time buyers Stamp Duty relief.
Answered by John Glen
In 2017, the Government permanently increased the price at which a property becomes liable to Stamp Duty Land Tax (SDLT) to £300,000 for first time buyers. Since its introduction, over 673,000 people have benefitted from the relief.
Consumers using a product referred to as ‘gradual homeownership’ do not buy a share in a property but instead invest in a partnership along with a set of investors who are seeking a profit on that investment. This form of ownership means that the purchase does not meet the statutory conditions for relief.
Asked by: Gary Sambrook (Conservative - Birmingham, Northfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans his Department has to apply the reduced rate of VAT to wedding venues.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The temporary reduced rate of VAT was introduced on 15 July to support the cash flow and viability of over 150,000 businesses and protect 2.4 million jobs in the hospitality and tourism sectors, and is due to run until 31 March 2021. Hospitality for the purposes of this relief includes the supply of food and non-alcoholic beverages from restaurants, cafes, pubs and similar establishments for consumption on these premises. It also includes the supply of hot food and non-alcoholic hot beverages to take away.
The Government has also announced a significant support package to help businesses from a whole range of sectors through the winter months, which includes an extension of the Coronavirus Job Retention Scheme, an extension of the Self-Employment Income Support Scheme grant, and an extension of the application window for the Government-backed loan schemes.
The Government keeps all taxes under review, and any future tax decisions will be made at Budget.
Asked by: Gary Sambrook (Conservative - Birmingham, Northfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the effect of a return to a 20 per cent VAT rate for the hospitality and tourism sectors on the ability of those sectors to compete in a global marketplace.
Answered by Jesse Norman - Shadow Leader of the House of Commons
Raising £130 billion in 2019/20, VAT is an important source of revenue and is vital for funding public services such as health, education and defence.
The temporary reduced rate of VAT was introduced on 15 July to support the cash flow and viability of over 150,000 businesses and protect 2.4 million jobs in the hospitality and tourism sectors, and is due to run until 31 March 2021. This measure is aimed at helping businesses recover from the impacts of COVID-19.
The Government keeps all taxes under review, and any future tax decisions will be made at Budget.
Asked by: Gary Sambrook (Conservative - Birmingham, Northfield)
Question to the HM Treasury:
What fiscal steps his Department is taking to improve transport connectivity throughout the UK.
Answered by Jesse Norman - Shadow Leader of the House of Commons
Improving transport connectivity throughout the UK is vital to the Government’s levelling up agenda. That is why at the Spending Review, the Government announced a new £4 billion Levelling Up Fund to invest in local infrastructure that has a visible impact on people and their communities. This is in addition to already announced transport investment through intra-city transport settlements, the Transforming Cities Fund and RIS2.
Throughout the pandemic, the Government has also made over £12 billion available to transport services across the UK.