Asked by: Sarah Green (Liberal Democrat - Chesham and Amersham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of allowing parents to retrospectively claim National Insurance credits if they were eligible for child benefit but did not claim them.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government keeps all tax policy under review.
Asked by: Sarah Green (Liberal Democrat - Chesham and Amersham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to ensure effective enforcement of the UK's financial sanctions regime for UK companies suspected of breaching sanctions on Russian oil.
Answered by Tulip Siddiq - Economic Secretary (HM Treasury)
The action taken by the UK and its Coalition partners to limit Russian energy revenues is having a significant impact, with data from Russia’s Ministry of Finance showing there was a 30% reduction in Russian government tax revenues from oil in 2023 compared to 2022.
HM Treasury’s Office of Financial Sanctions Implementation (OFSI) is the authority responsible for implementing financial sanctions and the Oil Price Cap. OFSI takes a proactive enforcement approach based on its enhanced intelligence and monitoring capabilities, and is currently undertaking a number of investigations into suspected breaches of the price cap, using powers under the Sanctions and Anti Money Laundering Act (SAMLA) to request information and working closely with our international partners in the G7+ Oil Price Cap Coalition.
Industry compliance is further strengthened through guidance and alerts, for example the compliance and enforcement alert issued in February 2024 on the Oil Price Cap, which highlighted to industry red flags for sanctions evasion.
Enforcement outcomes are never immediate, as complex investigations, including following due process, take time. The length of OFSI’s investigation process is consistent with international standards. OFSI assesses every instance of reported non-compliance and takes action in all cases where it is appropriate to do so. This was demonstrated by OFSI’s penalty against the British company Integral Concierge Services Limited on 27 September, for committing serious breaches of UK sanctions imposed as a result of Russia’s illegal invasion of Ukraine in 2022.
The UK has also taken action directly targeting shadow fleet vessels and entities that seek to undermine UK sanctions and facilitate the trade and transportation of Russian oil and oil products.
Asked by: Sarah Green (Liberal Democrat - Chesham and Amersham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make it her policy to reduce beer duty in line with cider.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Alcohol duties collectively raise over £12bn a year, helping to fund vital public services and addressing the harms caused to society and public health by excessive or irresponsible drinking.
Under the recent alcohol duty reforms, there remains a small number of disparities for products between 3.5 per cent and 8.5 per cent ABV, owing to concerns about the impact on the cider industry at the time of the reforms.
The Government is closely monitoring the impact of the recent reforms and rates that took effect on 1 August 2023, and the Chancellor has confirmed that she will set out plans for tax – as well as spending and borrowing – in the usual way at the Budget on 30 October.
Asked by: Sarah Green (Liberal Democrat - Chesham and Amersham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of increasing the lifetime ISA property value limit.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Lifetime ISA (LISA) was set up to help people build up savings for buying their first home, or for their later life. LISA funds, including any Government bonus, can be withdrawn for the purchase of a first home under £450,000, in the case of terminal illness, or from the age of 60.
Any unauthorised withdrawals are subject to a 25% withdrawal charge. This recoups the Government bonus, any interest or growth arising from it, and a proportion of the individual’s initial savings. Reducing the withdrawal charge would encourage the use of LISAs in ways for which they were not intended.
The Lifetime ISA is set at an appropriate level to support most first-time buyers across the UK while targeting households that may find it most difficult to get onto the property ladder. Data from the latest UK House Price Index demonstrates that the average price paid by first-time buyers remains below the LISA property price cap in all regions of the UK.
The Government keeps all aspects of savings tax policy under review, and considers all representations made carefully, with any changes made as part of the Budget process.
Asked by: Sarah Green (Liberal Democrat - Chesham and Amersham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of reducing early access penalty for lifetime ISAs from 25% to 20%.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Lifetime ISA (LISA) was set up to help people build up savings for buying their first home, or for their later life. LISA funds, including any Government bonus, can be withdrawn for the purchase of a first home under £450,000, in the case of terminal illness, or from the age of 60.
Any unauthorised withdrawals are subject to a 25% withdrawal charge. This recoups the Government bonus, any interest or growth arising from it, and a proportion of the individual’s initial savings. Reducing the withdrawal charge would encourage the use of LISAs in ways for which they were not intended.
The Lifetime ISA is set at an appropriate level to support most first-time buyers across the UK while targeting households that may find it most difficult to get onto the property ladder. Data from the latest UK House Price Index demonstrates that the average price paid by first-time buyers remains below the LISA property price cap in all regions of the UK.
The Government keeps all aspects of savings tax policy under review, and considers all representations made carefully, with any changes made as part of the Budget process.
Asked by: Sarah Green (Liberal Democrat - Chesham and Amersham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of removing the VAT exemption on independent school fees on (a) families within the armed forces community and (b) families in receipt of the Continuity of Education Allowance.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government is committed to breaking down barriers to opportunity, ensuring every child has access to high-quality education, which is why we have made the tough decision to end tax breaks for private schools. This will raise revenue for essential public services, including investing in the education system.
The Government has set out the details of this policy in the technical note Applying VAT to private School Fees and Removing the Business Rates Charitable Rates Relief for Private Schools.
There are a small number of circumstances where the government contributes to the private school fees of children of UK military service personnel and UK diplomatic officials through the Continuity of Education Allowance (CEA).
The government will monitor closely the impact of these policy changes on affected military and diplomatic families, with the upcoming Spending Review being the right time to consider any changes to this scheme.
A technical consultation on the technical note and draft VAT legislation will be open until 15 September 2024.
Asked by: Sarah Green (Liberal Democrat - Chesham and Amersham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans she has for consultation of key stakeholders that may be affected by the introduction of VAT on private school fees.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government is committed to breaking down barriers to opportunity, ensuring every child has access to high-quality education, which is why we have made the tough decision to end tax breaks for private schools. This will raise revenue for essential public services, including investing in the state education system.
The Prime Minister has been clear that if a child has an Education, Health and Care Plan that requires them to attend a private school because their needs cannot be met in the state sector, they will not feel an impact from VAT being charged on fees. The Chancellor has also been clear that changes will not come into force until 2025.
Further details on this policy will be set out in due course. The Government engages with a wide range of stakeholders with an interest in Government policy, including VAT, as part of the policy development and implementation process as a matter of course.
Asked by: Sarah Green (Liberal Democrat - Chesham and Amersham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she plans to take to ensure that the needs of children receiving specific provision for SEND within the private school system are taken into account as part of any consultation to introduce VAT on fees.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government is committed to breaking down barriers to opportunity, ensuring every child has access to high-quality education, which is why we have made the tough decision to end tax breaks for private schools. This will raise revenue for essential public services, including investing in the state education system.
The Prime Minister has been clear that if a child has an Education, Health and Care Plan that requires them to attend a private school because their needs cannot be met in the state sector, they will not feel an impact from VAT being charged on fees. The Chancellor has also been clear that changes will not come into force until 2025.
Further details on this policy will be set out in due course. The Government engages with a wide range of stakeholders with an interest in Government policy, including VAT, as part of the policy development and implementation process as a matter of course.
Asked by: Sarah Green (Liberal Democrat - Chesham and Amersham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to ensure that the total £1.5 billion allocated for the Equitable Life Payments Scheme is paid out to affected Equitable Life policyholders.
Answered by Bim Afolami
The Government allocated £1.5 billion to the Equitable Life Payment Scheme. Before it ceased operations in 2016, the Scheme issued £1.12 billion in tax-free payments to nearly 933,000 policyholders. The remainder of the £1.5 billion has been set aside for future payments to the With-Profits Annuitants. Further information is available in the Final Report on the Scheme (https://www.gov.uk/government/publications/equitable-life-payment-scheme-final-report).
Asked by: Sarah Green (Liberal Democrat - Chesham and Amersham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what guidelines are followed by HMRC when making decisions on the allocation of discretionary financial awards.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
The payment of rewards by HMRC is discretionary.
The reward application must evidence the quality of the information provided, the extent and value to which the information contributed to HMRC assigned matters, and the result.
Consideration must be given to any seizure details; revenue received/recovered; arrests; penalties; and the alleged value of a case being prosecuted by HMRC should be considered, where appropriate.
When processing a reward each case will be dealt with on its own merits.