Asked by: Rupa Huq (Labour - Ealing Central and Acton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to provide support to young families saving to buy their first home.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government is committed to supporting people of all incomes and at all stages of life to save, particularly younger individuals and families saving for their first home, through a programme of ‘own your home’ schemes. The following schemes are part of a package of measures to help people to save for their first house deposit and increase the supply of low-deposit mortgages for credit-worthy households.
The Help to Buy: Equity Loan is available to all those who aspire to own a new build home, but struggle to access or afford the repayments on a low deposit mortgage. Under this part of the scheme the government provides an equity loan worth up to 20 per cent of the value of a new build home, interest free for the first five years. The equity loan must be paid back to the government on sale, or when the mortgage is repaid. This scheme has been extended to run until March 2023.
In 2017, the government launched the Lifetime ISA (LISA) to support younger people saving for a first home or later life. Adults under 40 can open a LISA and save up to £4,000 each year until they turn 50. The government provides a generous 25 per cent bonus on all LISA contributions within these limits. These funds, including the government bonus, can be used as a deposit to purchase a first home up to the value of £450,000.
First-time buyers can similarly continue to save through a Help to Buy: ISA (now closed to new accounts) when saving to get onto the property ladder. The Government provides a 25 per cent bonus based on the account holder’s balance with a maximum bonus value of £3,000. Those participating into the scheme can continue saving into their account until November 2029 and have until December 2030 to claim their bonus.
In response to the reduced availability of 95% Loan To Value (LTV) mortgages following the pandemic, the Government launched the mortgage guarantee scheme in April 2021 to reinstate the market for 95% LTV products and to support households who struggle to get a mortgage because of the very large deposits required by lenders but who can afford the mortgage repayments with a 5% deposit.
The full list of Government schemes to help people own their own home is available here: https://www.ownyourhome.gov.uk/
Asked by: Rupa Huq (Labour - Ealing Central and Acton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will publish an impact assessment on the potential economic effect of ending the reduced rate of VAT for (a) hospitality and (b) tourism businesses on (i) jobs and (ii) businesses in those sectors.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
The temporary reduced rate of VAT was introduced on 15 July 2020 to support the cash flow and viability of around 150,000 businesses and protect over 2.4 million jobs in the hospitality and tourism sectors. As announced at Spring Budget 2021, the Government extended the 5 per cent temporary reduced rate of VAT for the tourism and hospitality sectors until the end of September 2021. On 1 October 2021, a new reduced rate of 12.5 per cent was introduced for these goods and services to help ease affected businesses back to the standard rate. This new rate will end on 31 March 2022.
This relief has cost over £8 billion and, whilst all taxes are kept under review, there are no plans to extend the 12.5 per cent reduced rate of VAT. The Government has been clear that this relief is a temporary measure designed to support the sectors that have been severely affected by COVID-19. It is appropriate that as restrictions are lifted and demand for goods and services in these sectors increases the temporary tax reliefs are first reduced, and then removed, in order to rebuild and strengthen the public finances.
Asked by: Rupa Huq (Labour - Ealing Central and Acton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of enabling energy consumers to opt-out of the energy bills rebate scheme.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
All domestic electricity customers in Great Britain will receive a £200 reduction in their electricity costs from this October. This will be delivered via energy suppliers and will be clearly identifiable as a line item on electricity bills.
This will help people with the increase in energy bills by spreading the increased costs over a few years, so they are more manageable for households.
The energy bill reduction is not a loan – there is no interest due on it, no debt attached to it, and it will not affect your credit rating.
Asked by: Rupa Huq (Labour - Ealing Central and Acton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will publish an impact assessment on the effect of ending the reduced rate of VAT on (a) jobs and (b) businesses in the hospitality sector.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
The temporary reduced rate of VAT was introduced on 15 July 2020 to support the cash flow and viability of around 150,000 businesses and protect over 2.4 million jobs in the hospitality and tourism sectors. As announced at Spring Budget 2021, the Government extended the 5 per cent temporary reduced rate of VAT for the tourism and hospitality sectors until the end of September 2021. On 1 October 2021, a new reduced rate of 12.5 per cent was introduced for these goods and services to help ease affected businesses back to the standard rate. This new rate will end on 31 March 2022.
This relief has cost over £8 billion and, whilst all taxes are kept under review, there are no plans to extend the 12.5 per cent reduced rate of VAT. The Government has been clear that this relief is a temporary measure designed to support the sectors that have been severely affected by COVID-19. It is appropriate that as restrictions are lifted and demand for goods and services in these sectors increases the temporary tax reliefs are first reduced, and then removed, in order to rebuild and strengthen the public finances.
Asked by: Rupa Huq (Labour - Ealing Central and Acton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the adequacy of the level of taxation on (a) purchasing, (b) selling and (c) trading of cryptocurrencies in the UK.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government established a Cryptoassets Taskforce in 2018, consisting of HM Treasury, the Bank of England and the Financial Conduct Authority (FCA). The Cryptoasset Taskforce is responsible for assessing developments in the cryptoasset market, and deciding what, if any, regulation is required in response.
HM Treasury and UK authorities have taken a series of actions to support innovation while mitigating risks to stability and market integrity. These include launching a new anti-money laundering and counter-terrorist financing regime for cryptoassets in 2020; and consulting on a proposal to ensure cryptoassets known as ‘stablecoins’ meet the same high standards expected of other payment methods. The Government will issue its response to this consultation shortly. On 18 January 2022, the Government announced its intention to legislate later this year to bring certain cryptoassets into the scope of financial promotions regulation, requiring them to be fair, clear and not misleading. This is aimed at improving consumers’ understanding of the risks and benefits associated with cryptoasset purchases, and ensuring that cryptoasset promotions are held to the same high standards as broader financial services products.
Profits from trading in and gains from disposing of cryptoassets are taxed in the same way and at the same rate as those from other assets. HMRC’s Cryptoassets Manual, one the most detailed publications from any tax administration, explains the tax consequences of different types of transactions involving cryptoassets for both businesses accepting them and individuals using them.
Asked by: Rupa Huq (Labour - Ealing Central and Acton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the adequacy of the current (a) rules and (b) regulations governing the (i) buying and (ii) selling of cryptocurrencies in the UK.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government established a Cryptoassets Taskforce in 2018, consisting of HM Treasury, the Bank of England and the Financial Conduct Authority (FCA). The Cryptoasset Taskforce is responsible for assessing developments in the cryptoasset market, and deciding what, if any, regulation is required in response.
HM Treasury and UK authorities have taken a series of actions to support innovation while mitigating risks to stability and market integrity. These include launching a new anti-money laundering and counter-terrorist financing regime for cryptoassets in 2020; and consulting on a proposal to ensure cryptoassets known as ‘stablecoins’ meet the same high standards expected of other payment methods. The Government will issue its response to this consultation shortly. On 18 January 2022, the Government announced its intention to legislate later this year to bring certain cryptoassets into the scope of financial promotions regulation, requiring them to be fair, clear and not misleading. This is aimed at improving consumers’ understanding of the risks and benefits associated with cryptoasset purchases, and ensuring that cryptoasset promotions are held to the same high standards as broader financial services products.
Profits from trading in and gains from disposing of cryptoassets are taxed in the same way and at the same rate as those from other assets. HMRC’s Cryptoassets Manual, one the most detailed publications from any tax administration, explains the tax consequences of different types of transactions involving cryptoassets for both businesses accepting them and individuals using them.
Asked by: Rupa Huq (Labour - Ealing Central and Acton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the potential merits of delivering targeted support for creative freelancers, via grant funding, to include (a) newly self-employed people, (b) people with less than 50 per cent of their income from self-employment, (c) PAYE freelancers and (d) limited company directors.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The government has provided around £400 billion of direct support for the economy through the pandemic to date, which has helped to safeguard livelihoods and public services in every region and nation of the UK.
The government recognises the impact Omicron is having on businesses and individuals, which is why we announced £1 billion of targeted financial grant support for the hospitality, leisure and cultural sectors to protect jobs and businesses.
The package includes £30 million which will be made available through the Culture Recovery Fund (CRF), to support theatres, museums and other vital cultural institutions through the temporary disruption this winter, helping in turn to support the livelihoods of those working in this sector.
In addition to the CRF, government funding via Arts Council England will also provide an immediate £1.5 million to support freelancers affected by the pandemic, alongside a further £1.35 million contribution from the theatre sector. This will provide grants of £650,000 each directly to the Theatre Artists Fund, Help Musicians, and £200,000 to a-n the Artists Information Company, a charity for visual artists which will distribute cash to freelancers over the coming weeks.
The government is also waiving late filing and late payment penalties for Income Tax Self-Assessment (ITSA) taxpayers to support cashflow and ease administrative burdens. Self-Assessment taxpayers with up to £30,000 of tax debt can spread their tax payments online, through HMRC’s “time to pay” service, and all others can call HMRC to arrange a repayment plan. For those on low income whose earnings continue to be affected by Covid-19 restrictions, work coaches will continue to be able to suspend the Universal Credit Minimum Income Floor on an individual basis for up to six months.
Asked by: Rupa Huq (Labour - Ealing Central and Acton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many people subject to the Loan Charge have declared bankruptcy as of 15 December 2021.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
I refer the Honourable Member to the answer that was given to PQ UIN 87576 and PQ UIN 87577 on 9 December 2021.
Asked by: Rupa Huq (Labour - Ealing Central and Acton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many people seeking refunds as a result of the changes made in response to the Morse Review have been refunded by HMRC as of 15 December 2021.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
Following Lord Morse’s Independent Loan Charge Review, the Government introduced legislation requiring HMRC to establish a scheme to repay relevant Voluntary Restitution elements of disguised remuneration settlements.
These amounts were voluntary payments that taxpayers had agreed to make as part of settlements concluded before changes were made to the scope of the Loan Charge. Individuals and employers had until 30 September 2021 to apply to HMRC for a refund or waiver.
HMRC repays amounts that were paid in disguised remuneration scheme settlements, and/or waives amounts of instalments due that have not yet been paid if certain conditions are met.
As of 17 December 2021, HMRC had processed approximately 1330 applications, of which approximately 925 had received either a repayment, a waiver, or both. Approximately 405 of the applications processed at that date were either invalid or ineligible.
Asked by: Rupa Huq (Labour - Ealing Central and Acton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the potential merits of establishing a 24-hour helpline for people subject to the Loan Charge.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
HMRC operates a settlement helpline and a debt helpline for taxpayers who have used disguised remuneration avoidance schemes. All call handlers are trained to identify taxpayers who might need additional support.
For taxpayers who may need specialised help, HMRC advisors encourage them to contact organisations such as Samaritans or Mind. The Samaritans are available to provide emotional support 24 hours a day, 7 days a week.
The Government will continue to work with HMRC to consider what additional support could be provided to taxpayers who need extra help.