Asked by: Stephen Timms (Labour - East Ham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to support the UK’s investment industry in meeting their fiduciary duty to consumers.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
Fiduciary duty – and the role it plays in ensuring that those managing money do so in the best interest of their beneficiaries – is an important part of any successful financial system.
The government recognises that investors and pension trustees would like further information and clarity on how best to fulfil their fiduciary duty, particularly in the context of the transition to net zero and investment in productive finance.
That is why the government is supporting further consideration of these issues.
The government published a call for evidence on Pension Trustee Skills, Capability and Culture on 11 July which sought to understand whether fiduciary duty contributes to risk avoidance in the investment supply chain, to the detriment of pension savers. We will be publishing our response later this year.
In addition, to support investors, DWP committed in the revised Green Finance Strategy to examining how closely their Stewardship Guidance is being followed, including whether incorrect interpretations of fiduciary duties are playing a role in limiting investor’s decision making.
Moreover, the Financial Markets and Law Committee – which includes DWP and HMT representatives – is currently considering issues around fiduciary duties and sustainability, and whether further action or clarity from the government or regulators is needed.
The government would expect questions around international comparators to be raised as part of these discussions, where those comparisons are relevant. Any additional action or clarity on the definition or interpretation of fiduciary duty will be made in line with UK legislation.
Asked by: Stephen Timms (Labour - East Ham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the effectiveness of tax relief for national heritage assets as a contribution to public enjoyment of such assets.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
Land, buildings and objects of outstanding scenic, architectural, historic or artistic interest form an integral part of the cultural life of this country. The capital taxes conditional exemption encourages the nation’s heritage to be preserved and displayed for the enjoyment of the public.
Following a detailed review, these rules were updated in the Finance Act 1998. All elements of the tax system remain under continuous review.
The majority of objects that benefit from exemption are displayed in public museums or galleries. Owners of land and buildings report visitor numbers as part of the regular monitoring undertaken by HMRC in collaboration with heritage advisory bodies. HMRC does not collate these numbers and they could only be provided reliably at disproportionate cost.
Estimates of the cost of the conditional exemption are published as part of HMRC’s ‘non-structural tax reliefs’ publication: https://www.gov.uk/government/statistics/main-tax-expenditures-and-structural-reliefs.
Asked by: Stephen Timms (Labour - East Ham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what information his Department holds on the number of people that visited tax exemption scheme heritage assets in each of the last 10 years.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
Land, buildings and objects of outstanding scenic, architectural, historic or artistic interest form an integral part of the cultural life of this country. The capital taxes conditional exemption encourages the nation’s heritage to be preserved and displayed for the enjoyment of the public.
Following a detailed review, these rules were updated in the Finance Act 1998. All elements of the tax system remain under continuous review.
The majority of objects that benefit from exemption are displayed in public museums or galleries. Owners of land and buildings report visitor numbers as part of the regular monitoring undertaken by HMRC in collaboration with heritage advisory bodies. HMRC does not collate these numbers and they could only be provided reliably at disproportionate cost.
Estimates of the cost of the conditional exemption are published as part of HMRC’s ‘non-structural tax reliefs’ publication: https://www.gov.uk/government/statistics/main-tax-expenditures-and-structural-reliefs.
Asked by: Stephen Timms (Labour - East Ham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what his estimate he has made of the annual cost of offering tax relief for national heritage assets.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
Land, buildings and objects of outstanding scenic, architectural, historic or artistic interest form an integral part of the cultural life of this country. The capital taxes conditional exemption encourages the nation’s heritage to be preserved and displayed for the enjoyment of the public.
Following a detailed review, these rules were updated in the Finance Act 1998. All elements of the tax system remain under continuous review.
The majority of objects that benefit from exemption are displayed in public museums or galleries. Owners of land and buildings report visitor numbers as part of the regular monitoring undertaken by HMRC in collaboration with heritage advisory bodies. HMRC does not collate these numbers and they could only be provided reliably at disproportionate cost.
Estimates of the cost of the conditional exemption are published as part of HMRC’s ‘non-structural tax reliefs’ publication: https://www.gov.uk/government/statistics/main-tax-expenditures-and-structural-reliefs.
Asked by: Stephen Timms (Labour - East Ham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when the terms of the tax exemption scheme for heritage assets were last reviewed.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
Land, buildings and objects of outstanding scenic, architectural, historic or artistic interest form an integral part of the cultural life of this country. The capital taxes conditional exemption encourages the nation’s heritage to be preserved and displayed for the enjoyment of the public.
Following a detailed review, these rules were updated in the Finance Act 1998. All elements of the tax system remain under continuous review.
The majority of objects that benefit from exemption are displayed in public museums or galleries. Owners of land and buildings report visitor numbers as part of the regular monitoring undertaken by HMRC in collaboration with heritage advisory bodies. HMRC does not collate these numbers and they could only be provided reliably at disproportionate cost.
Estimates of the cost of the conditional exemption are published as part of HMRC’s ‘non-structural tax reliefs’ publication: https://www.gov.uk/government/statistics/main-tax-expenditures-and-structural-reliefs.
Asked by: Stephen Timms (Labour - East Ham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether money a person receives from their pension scheme via the Fraud Compensation Fund is taxable; and if he will make a statement.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Fraud Compensation Fund pays compensation to pension scheme administrators or trustees, who then provide benefits to members. Those benefits will be taxed like any other pension benefits. An individual pays income tax if their total annual income is more than their Income Tax Personal Allowance which is currently £12,570. Where an individual has income above the Personal Allowance, payments of pension (including pension benefits arising from a compensation payment) is subject to income tax, which is collected through Pay As You Earn.
Asked by: Stephen Timms (Labour - East Ham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of increasing the Lifetime Individual Savings Account first home property value limit in line with average house prices on the level of house purchases by first time buyers.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Government is committed to supporting people of all incomes and at all stages of life to save, and to making the aspiration of home ownership a reality for as many households as possible.
Data from the latest UK House Price Index demonstrates that, although the average price paid by first-time buyers has increased, it is still below the LISA property price cap in all regions of the UK except for Inner London, where the average price paid is affected by Boroughs with very high property values.
The Government keeps all aspects of the savings tax regime, including the merits of increasing the LISA property value limit, under review.
Asked by: Stephen Timms (Labour - East Ham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the implications for his policies of Ethiopia's progress under the G20 common framework for debt treatments; whether he has made an estimate of the timescale for Ethiopia's private and bilateral creditors agreeing to a potential debt restructuring of that country; and if he will make a statement.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
Ethiopia requested debt relief under the Common Framework in February 2021. Progress towards this stalled due to the conflict in northern Ethiopia and resulting inability for an IMF-supported reform programme, a key requirement of the Common Framework. Alongside our partners at the IMF and G20 we encourage swift progress on a debt treatment for Ethiopia under an envisaged IMF-supported program when conditions allow. We also the welcome the progress on implementing the peace deal, which will be key to sustained prosperity for all Ethiopians.
Asked by: Stephen Timms (Labour - East Ham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, for what reason he proposes that the new Audit Regulation and Governance Authority will regulate non-public interest actuarial work.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
As set out in the Government’s May 2022 response to its White Paper consultation, Restoring trust in audit and corporate governance, the Government intends that the Audit, Reporting and Governance Authority (ARGA) will regulate public interest actuarial work. These activities have the most significant adverse consequences if not carried out and completed to an appropriate standard.
For non-public interest actuarial work, ARGA will have powers to set technical standards, but will not have monitoring or enforcement powers.
This approach maintains the status quo in respect of non-public interest actuarial work, as the Financial Reporting Council currently sets technical actuarial standards. It will also deliver a broader strengthening of the actuarial regime, as recommended in Sir John Kingman’s independent review.
Asked by: Stephen Timms (Labour - East Ham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what preparations he has made to legislate for the long-term regulatory framework for Open Banking once the Joint Regulatory Oversight Committee reports in 2023.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
UK Open Banking has been a great success story with over 7 million people in the UK now regularly using this technology to manage their money and to make payments.
The Government is committed to maintaining the UK’s leadership in this field and sustaining momentum. We wish to build on the initial success of UK Open Banking to help unlock and realise further benefits for consumers, businesses, and the wider economy.
HM Treasury is working closely with the relevant regulators through the Joint Regulatory Oversight Committee to develop recommendations on the design of the future Open Banking entity. HM Treasury is also leading work to develop a long-term regulatory framework for this technology, underpinned by any necessary legislation.
The Committee will release its recommendations in the coming weeks following joint statements in March and December 2022 which can be found at: https://www.gov.uk/government/publications/joint-statement-by-hm-treasury-the-cma-the-fca-and-the-psr-on-the-future-of-open-banking/joint-statement-by-hm-treasury-the-cma-the-fca-and-the-psr-on-the-future-of-open-banking and https://www.gov.uk/government/publications/joint-statement-by-hm-treasury-the-cma-the-fca-and-the-psr-to-update-on-the-future-of-open-banking/joint-statement-by-hm-treasury-the-cma-the-fca-and-the-psr-to-update-on-the-future-of-open-banking.