Asked by: Nadia Whittome (Labour - Nottingham East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the proposed cap on salary sacrifice benefits on younger workers' pensions.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to pensions salary sacrifice.
Everyone using salary sacrifice will still benefit from the tax advantages available up to the £2,000 cap. The government supports all individuals to save into pensions through a generous system of income tax and NICs reliefs worth over £70 billion a year.
Of employees making pension contributions through salary sacrifice, those under the age of 30 are far more likely to be protected by the £2,000 cap than those above the age of 30.
Asked by: Nadia Whittome (Labour - Nottingham East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of extending the ability of schools and academies to reclaim VAT under Section 33 of the VAT Act 1994 to further education colleges.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Further Education (FE) funding is vital to ensure people are being trained in the skills they need to thrive in the modern labour market. The 2025 Spending Review provided an additional £1.2 billion per year by 2028-29 for skills and £1.7 billion of capital funding to help colleges maintain the condition of their estate. In addition, the Government is providing £375 million of capital investment to support the FE system to accommodate increasing student numbers.
For their non-business activity, FE colleges are unable to reclaim VAT incurred. We operate several VAT refund schemes for schools and academies which are designed variously to ensure that VAT is not a burden on local taxation, and that academies are not disincentivised to leave LA control. FE colleges do not meet the criteria for either scheme.
In relation to business activity, FE colleges enjoy an exemption from VAT which means that they do not have to charge VAT to students, but cannot recover it either.
Asked by: Nadia Whittome (Labour - Nottingham East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the benefits of introducing additional taxation on large SUVs.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Vehicles used or kept on public roads pay Vehicle Excise Duty (VED). Cars registered on or after 1 April 2017 pay a variable first year VED rate according to the emissions of the vehicle, before moving to a standard annual rate after the first year.
For certain vehicle classifications, such as heavy goods vehicles (HGVs), VED liability is calculated in accordance with the vehicle's weight in order to reflect in part the road damage caused by heavier vehicles. However, this is not the case for cars, due in part to their relatively lower impact on road damage compared to heavier vehicles.
When making changes to the tax system, the Government considers a range of trade-offs, such as complexity in the tax system and administrative burdens.
The Government annually reviews the rates and thresholds of taxes and reliefs to ensure that they are appropriate and reflect the current state of the economy. The Chancellor makes decisions on tax policy at fiscal events in the context of the public finances.
Asked by: Nadia Whittome (Labour - Nottingham East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential merits of establishing a taskforce on improving access to travel insurance for people with cancer.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The government does not intend to establish a taskforce on travel insurance for people with cancer at this time. However, the government recognises the important role of insurance products, including travel insurance, in building the financial resilience of consumers and protecting them when things go wrong. The government’s Financial Inclusion Strategy seeks to close gaps in protection and ensure that the insurance sector is well-placed to support the financial wellbeing of households and vulnerable customers.
In addition, the Financial Conduct Authority (FCA), the independent body responsible for regulating and supervising the financial services industry, requires firms to treat customers fairly. Since 2021, the FCA also requires firms providing travel insurance to signpost consumers to a directory of specialist providers if they are declined cover, offered cover with an exclusion, or charged a significantly higher premium based on a pre-existing medical condition. The FCA has robust powers to act against firms that fail to comply with its rules.
Different insurers may take a different view of the relevant factors in determining the price of insurance based on their differing claims experience. The government would always encourage consumers to shop around for the most suitable cover at the best price. The British Insurance Brokers’ Association (BIBA) can offer guidance on how to look across the insurance market for suitable products and may be able to provide names of specialist brokers. BIBA can be contacted at: www.biba.org.uk/find-insurance/.
Asked by: Nadia Whittome (Labour - Nottingham East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the proposed higher business rates multiplier for properties above £500,000 on cultural venues.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto.
The Government is doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties, including cultural venues with rateable values below £500,000. These new tax rates are worth nearly £900 million per year and will benefit over 750,000 properties.
These new tax rates must be sustainably funded and so the Government is also introducing a higher rate on properties with rateable values of £500,000 and above. This represents around only 1 per cent of properties.
Asked by: Nadia Whittome (Labour - Nottingham East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of changing from a motive or purpose test to an outcome test as outlined in the draft Finance Bill 2025–26 on the volume of charity donations.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Charities rightly enjoy generous tax reliefs. However, a small number of charities are receiving tax relief in ways that were not intended by Parliament. Charity tax rules are being strengthened to improve HMRC’s ability to challenge abusive arrangements in an appropriate and proportionate way.
The new charity rules in the Finance Bill 2025-26 for legacy giving will ensure a charity uses tax relieved income for its charitable purposes. They will not require charities to spend gifts from wills within a set timeframe.
The new rules will replace the current purpose test with an outcome test. This will better prevent the abuse of tax reliefs through arrangements designed to give financial advantages to donors in return for their donation.
Updated guidance will support charities and donors, giving clarity and reassurance around the rules and making it clear that the honest majority of donors and charities will remain unaffected by these reforms.
Asked by: Nadia Whittome (Labour - Nottingham East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the proposal to require charities to spend gifts from wills within a set timeframe in the draft Finance Bill 2025-26 on legacy giving.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Charities rightly enjoy generous tax reliefs. However, a small number of charities are receiving tax relief in ways that were not intended by Parliament. Charity tax rules are being strengthened to improve HMRC’s ability to challenge abusive arrangements in an appropriate and proportionate way.
The new charity rules in the Finance Bill 2025-26 for legacy giving will ensure a charity uses tax relieved income for its charitable purposes. They will not require charities to spend gifts from wills within a set timeframe.
The new rules will replace the current purpose test with an outcome test. This will better prevent the abuse of tax reliefs through arrangements designed to give financial advantages to donors in return for their donation.
Updated guidance will support charities and donors, giving clarity and reassurance around the rules and making it clear that the honest majority of donors and charities will remain unaffected by these reforms.
Asked by: Nadia Whittome (Labour - Nottingham East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the Loan Charge on the mental health of those affected; and if she will take steps to prevent such harm.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government commissioned an independent review of the loan charge to help bring the matter to a close for those affected whilst ensuring fairness for all taxpayers. The Government will respond by Autumn Budget 2025.
The independent review was led by Ray McCann whose name was suggested by one of the Loan Charge campaigners. The terms of reference made it clear that he would be supported by a team of officials based outside of HM Treasury and HMRC, none of whom had previously worked on this policy area. Mr McCann was responsible for deciding how to conduct the review and will also have the final say on what is included in his report.
HMRC has guidance and training in place for customer advisors on identifying people who need extra support and providing reasonable adjustments to meet their needs. HMRC can offer support to individuals with disguised remuneration liabilities through manageable payment plans and its well-established Extra Support Service.
Where appropriate, HMRC will signpost people to relevant voluntary and community organisations and where needed, to a dedicated Samaritans helpline for specialist emotional support where people can talk though any concerns or worries.
Asked by: Nadia Whittome (Labour - Nottingham East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to ensure that the review of the Loan Charge is (a) independent, (b) transparent, (c) robust and (d) free from interference.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government commissioned an independent review of the loan charge to help bring the matter to a close for those affected whilst ensuring fairness for all taxpayers. The Government will respond by Autumn Budget 2025.
The independent review was led by Ray McCann whose name was suggested by one of the Loan Charge campaigners. The terms of reference made it clear that he would be supported by a team of officials based outside of HM Treasury and HMRC, none of whom had previously worked on this policy area. Mr McCann was responsible for deciding how to conduct the review and will also have the final say on what is included in his report.
HMRC has guidance and training in place for customer advisors on identifying people who need extra support and providing reasonable adjustments to meet their needs. HMRC can offer support to individuals with disguised remuneration liabilities through manageable payment plans and its well-established Extra Support Service.
Where appropriate, HMRC will signpost people to relevant voluntary and community organisations and where needed, to a dedicated Samaritans helpline for specialist emotional support where people can talk though any concerns or worries.
Asked by: Nadia Whittome (Labour - Nottingham East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of reducing the annual Cash ISA allowance on older savers.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
ISAs incentivise saving and investment for future goals by providing tax advantages to individual taxpayers. The Government recognises the important role that cash savings play in helping households build a financial buffer for a rainy day. The Government continues to consider reforms to ISAs and savings to achieve the right balance between cash savings and investment and ensure better outcomes for both savers and the UK economy.