Asked by: Wendy Morton (Conservative - Aldridge-Brownhills)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment has she made of the potential impact of changes to Employer’s National Insurance Contributions announced in the Autumn Budget 2024 on charities and community organisations in (a) the West Midlands and (b) Aldridge-Brownhills constituency.
Answered by James Murray - Exchequer Secretary (HM Treasury)
In order to repair the public finances and raise the revenue required to fund our public services, the government has taken the difficult decision to increase employer National Insurance which has included the charity sector.
HMRC has published a Tax Information and Impact Note that covers the employer NICs changes, which can be found here: https://www.gov.uk/government/publications/changes-to-the-class-1-national-insurance-contributions-secondary-threshold-the-secondary-class-1-national-insurance-contributions-rate-and-the-empl/changes-to-the-class-1-national-insurance-contributions-secondary-threshold-the-secondary-class-1-national-insurance-contributions-rate-and-the-empl
The Government has protected the smallest businesses and charities from the impact of the increase to employer National Insurance by increasing the Employment Allowance from £5,000 to £10,500, which means that 865,000 employers will pay no NICs at all next year, more than half of employers will see no change or will gain overall from this package, and all eligible employers will be able to employ up to four full-time workers on the National Living Wage and pay no employer NICs.
More broadly, within the tax system, we provide support to charities through a range of reliefs and exemptions, including reliefs for charitable giving, with more than £6 billion in charitable reliefs provided to charities, CASCs and their donors in 2023 to 2024.
Asked by: Wendy Morton (Conservative - Aldridge-Brownhills)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to Qs 258-259 of the oral evidence given by the Chancellor of the Exchequer to the Treasury Select Committee on Wednesday 6 November 2024, what value of Business Property Relief was claimed on farmer's estates for financial year 2021-22.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government published information about the reforms to agricultural property relief and business property relief at www.gov.uk/government/publications/agricultural-property-relief-and-business-property-relief-reforms. This includes information on claims at death in 2021to 2022 referenced by the Chancellor at the Treasury Select Committee on 6 November 2024.
The Chancellor wrote to the Treasury Select Committee on 15 November 2024, detailing the distribution of claims at death for agricultural property relief with values of business property relief claims added, where an estate has also claimed business property relief. This letter has been published at https://committees.parliament.uk/publications/45691/documents/226235/default/.
Asked by: Wendy Morton (Conservative - Aldridge-Brownhills)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to Qs 258-259 of the oral evidence given by the Chancellor of the Exchequer to the Treasury Select Committee on Wednesday 6 November 2024, whether the figures quoted in her answers related only to Agricultural Property Relief and did not include Business property Relief claimed by farmers for the same period.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government published information about the reforms to agricultural property relief and business property relief at www.gov.uk/government/publications/agricultural-property-relief-and-business-property-relief-reforms. This includes information on claims at death in 2021to 2022 referenced by the Chancellor at the Treasury Select Committee on 6 November 2024.
The Chancellor wrote to the Treasury Select Committee on 15 November 2024, detailing the distribution of claims at death for agricultural property relief with values of business property relief claims added, where an estate has also claimed business property relief. This letter has been published at https://committees.parliament.uk/publications/45691/documents/226235/default/.
Asked by: Wendy Morton (Conservative - Aldridge-Brownhills)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of changes to (a) agricultural property relief and (b) business property relief announced in the Autumn Budget 2024 on (i) abattoirs, (ii) butchers, (iii) agricultural retailers, (iv) agricultural machinery retailers and (v) other agriculture-related businesses.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government published information about the reforms to agricultural property relief and business property relief at www.gov.uk/government/publications/agricultural-property-relief-and-business-property-relief-reforms.
It is expected that up to around 2,000 estates will be affected by the changes to APR and BPR in 2026-27, with around half of those being claims that involve AIM shares. Almost three-quarters of estates claiming agricultural property relief (including those claiming agricultural property relief and business property relief together) each year are expected to be unaffected by these reforms.
In accordance with standard practice, a tax information and impact note will be published alongside the draft legislation before the relevant Finance Bill.
Asked by: Wendy Morton (Conservative - Aldridge-Brownhills)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of changes to Agricultural Property Relief and Business Property Relief on (a) arable, (b) livestock and (c) hill farms.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government published information about the reforms to agricultural property relief and business property relief at www.gov.uk/government/publications/agricultural-property-relief-and-business-property-relief-reforms.
It is expected that up to around 2,000 estates will be affected by the changes to APR and BPR in 2026-27, with around half of those being claims that involve AIM shares. Almost three-quarters of estates claiming agricultural property relief (including those claiming agricultural property relief and business property relief together) each year are expected to be unaffected by these reforms.
In accordance with standard practice, a tax information and impact note will be published alongside the draft legislation before the relevant Finance Bill.
Asked by: Wendy Morton (Conservative - Aldridge-Brownhills)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of changes to (a) Agricultural Property Relief and (b) Business Property Relief on trends in the sale of agricultural land assets.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government published information about the reforms to agricultural property relief and business property relief at www.gov.uk/government/publications/agricultural-property-relief-and-business-property-relief-reforms.
It is expected that up to around 2,000 estates will be affected by the changes to APR and BPR in 2026-27, with around half of those being claims that involve AIM shares. Almost three-quarters of estates claiming agricultural property relief (including those claiming agricultural property relief and business property relief together) each year are expected to be unaffected by these reforms.
In accordance with standard practice, a tax information and impact note will be published alongside the draft legislation before the relevant Finance Bill.
Asked by: Wendy Morton (Conservative - Aldridge-Brownhills)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, for what reasons private cars that have been converted to LPG only receive a discount on Vehicle Excise Duty instead of being reclassified according to their new carbon dioxide emissions rating.
Answered by Damian Hinds
The government estimates that the cost of a formal laboratory test to recertify carbon dioxide (CO2) emission values for converted vehicles is in many cases greater than the lifetime VED savings that would be due to the motorist for that vehicle. It is therefore impractical to conduct such tests on a widespread basis.
Instead the government offers a £10 discount to VED rates for any vehicle that has been converted to use LPG, without the need for formal laboratory retesting.
Vehicles using LPG also benefit from reduced fuel duty costs relative to petrol and diesel.