Asked by: Jane Hunt (Conservative - Loughborough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of extending the criteria for business rates relief for empty properties beyond three months when there has been a change of ownership.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Government maintains an Empty Property Relief (EPR) to support property owners between the reoccupation of vacated premises. The current structure of EPR strikes a balance between not penalising landlords who lose a tenant at short notice, while incentivising property owners and landlords to secure new tenants.
The fundamental review of business rates is considering all parts of the business rates system, including reliefs and any eligibility criteria.
Asked by: Jane Hunt (Conservative - Loughborough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if, after the transition period, he will extend import duty relief to pleasure craft with UK VAT-paid status which have been purchased in the EU but which have not yet been located in the UK.
Answered by Jesse Norman - Shadow Leader of the House of Commons
Pleasure craft returning to the UK at the end of the transition period will be able to claim the Returned Goods Relief (RGR) for customs duty and import VAT, subject to all conditions for the relief being met. From 1 January 2021 in order to qualify for RGR goods must have previously been located in the UK. The Government has extended the eligibility conditions for RGR to take account of the situation faced by owners of pleasure craft. The normal three year time limit for returning goods to the UK has been extended so that goods can benefit from RGR if they return to the UK by 31 December 2021 and meet the conditions for relief.
Asked by: Jane Hunt (Conservative - Loughborough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment the Government has made of the potential merits of introducing a covid-19 financial support scheme for directors of limited companies who pay themselves through dividends which is based on the trading profits of the company contained in the corporation tax return.
Answered by Jesse Norman - Shadow Leader of the House of Commons
In the development of the COVID-19 support schemes, HMRC have taken into consideration what is operationally feasible, while managing technical complexities and fraud risks, and ensuring that other schemes the Government has committed to are delivered in a timely way.
Income from dividends is a return on investment in the company, rather than wages. It is not possible for HMRC to distinguish between dividends derived from an individual’s own company and dividends from other sources, and between dividends in lieu of employment income and as returns from other corporate activity.
Payment through dividends would require owner-managers to make a claim and submit information that HMRC could not manageably verify to ensure payments are made to eligible companies for eligible activity.
Company directors who are paid via dividends may be eligible for various elements of the support available, including the Coronavirus Job Retention Scheme (in respect of their salary but not their dividends), Bounce Back loans, tax deferrals, rental support, increased levels of Universal Credit, mortgage holidays and other business support grants.
Asked by: Jane Hunt (Conservative - Loughborough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the effect of the fiscal framework on farmers who have diversified from farming activity.
Answered by Jesse Norman - Shadow Leader of the House of Commons
A longstanding feature of the UK tax system is that a person’s UK farming income is treated as one trade. When a farming business diversifies, any non-farming activities are treated as separate sources of income that need to be declared separately on the tax return. The Government recognises that this creates additional administrative burdens. However, taxing diversified rural businesses as one unit would carry a risk that uncommercial activities might be grouped together with profitable trades. The Government keeps all taxes under review but has no plans to change the current tax rules for diversified rural businesses.
Asked by: Jane Hunt (Conservative - Loughborough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions he has had with his Chinese counterpart on debt relief for developing countries in response to the covid-19 pandemic.
Answered by John Glen
In April 2020, G20 Finance Ministers approved the Debt Service Suspension Initiative (DSSI) to pause debt repayments from the poorest countries in 2020. On 14 October the Chancellor met with his G20 counterparts, including China, to agree an extension of the DSSI for 6 months. The G20 also agreed in principle a Common Framework on future debt treatments beyond the DSSI which will ensure fair, timely and sustainable debt reductions on a case by case basis when needed.
Asked by: Jane Hunt (Conservative - Loughborough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the cost to the mining and quarrying industries of the withdrawal of the red diesel fuel duty rebate from April 2022; and whether that assessment includes the availability of alternative non-fossil fuel heavy plant and machinery.
Answered by Kemi Badenoch - Leader of HM Official Opposition
At Budget 2020, the Chancellor announced that the Government will remove the entitlement to use red diesel from April 2022, except in agriculture, fish farming, rail and for non-commercial heating (including domestic heating). This change will ensure that most businesses using diesel in the UK pay the standard fuel duty rate on diesel, which more fairly reflects the harmful impact of the emissions they produce. These reforms are also designed to ensure that the tax system incentivises users of diesel to improve the energy efficiency of their vehicles and machinery, invest in cleaner alternatives or use less fuel.
The Government recognises that this will be a significant change for some businesses, including in the mining and quarrying industries. It launched a consultation in July to make sure it has not overlooked any exceptional reasons why other sectors should be allowed to continue to use red diesel beyond April 2022, and officials met with representatives from the industry on the 8th of September. As part of this, the Government has been seeking information from affected users on the expected impact of these tax changes, including on their capacity to shift to cleaner alternatives.
Asked by: Jane Hunt (Conservative - Loughborough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the feasibility of extending the reduced rate of VAT for hospitality, holiday accommodation and attractions beyond 12 January 2021 to further support business in those sectors.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Government has temporarily applied a reduced rate of VAT (5 per cent) to tourist attractions and goods and services supplied by the hospitality sector. It came into effect on 15 July 2020 and will end on 12 January 2021 and applies across the UK.
Applying the reduced rate for a longer period would come at a significant cost to the Exchequer. However, the Government keeps all taxes under review.