Asked by: Liz Kendall (Labour - Leicester West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential impact of abolishing National Insurance contributions on how qualifying years for pension entitlement would be (a) calculated and (b) accounted.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
The Government believes the double taxation of work is unfair. That is why we’ve cut 4p from employee NICs in the last six months which will mean the average worker receives a tax cut worth £900 this coming year and why we are committed to ending this unfairness.
Cutting NICs rates does not affect anyone’s entitlement to the State Pension or contributory benefits.
Asked by: Lord Rooker (Labour - Life peer)
Question to the Department for Levelling Up, Housing & Communities:
To ask His Majesty's Government what assessment they have made of the impact on (1) local government finances in England, and (2) the equality of taxation of council tax bands in England being based on property valuations from April 1991.
Answered by Baroness Scott of Bybrook - Parliamentary Under Secretary of State (Department for Levelling Up, Housing and Communities)
The Government has no plans to reform the council tax system in this Parliament. A council tax revaluation would be expensive to undertake and could result in increases in bills for many households as well as disrupting the operation of the local government funding system. Council Tax levels are set by local authorities who are required to put in place council tax reduction schemes to help those in financial hardship. When setting out the resources available to local authorities, the annual Local Government Finance Settlement takes account of their differing abilities to generate income through council tax.
Asked by: Andrew Bridgen (Independent - North West Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to make the assets of non-domiciled UK residents subject to inheritance tax.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
From April 2025, the government will abolish the current tax regime for non-UK domiciled individuals, or non-doms, and get rid of the outdated concept of domicile in the tax system, replacing this with a modern, simpler, fairer and competitive residence-based regime.
The government will also move to a residence-based regime for Inheritance Tax (IHT) and will consult in due course on the best way to achieve this. No changes to IHT will take effect before April 2025.
Further information can be found in the published technical note: https://www.gov.uk/government/publications/changes-to-the-taxation-of-non-uk-domiciled-individuals.
Asked by: Lord Lipsey (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government why they do not include a postal address option on tax code notices to enable digitally excluded people to contact HMRC more easily.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
HMRC removed postal address from notices to encourage customers to use their digital services and interact with them online through their Personal Tax Account. Customers can submit queries electronically via HMRC’s iForm, which is handled by a dedicated team similar post correspondence.
For those unable to engage online, HMRC continues to provide support through telephone, including the Extra Support Service. This service is for customers who cannot contact HMRC due to health or personal issues. They can request phone, video, or in-person appointments when calling the helplines, and HMRC’s advisers will assess their circumstances to offer the best option for them.
More information can be found on the Extra Support Service at:
Get help from HMRC if you need extra support: Help you can get - GOV.UK (www.gov.uk)
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, further to the recent survey conducted by Boston Consulting Group, what steps they are taking to address the chief concerns identified by businesses, such as (1) high energy prices, and (2) taxation.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
The Government is backing British business, pursuing an ambitious policy agenda to boost growth and productivity. The OBR expects that policies announced at Spring Budget 2024 and in the previous two fiscal events will increase the size of the economy by 0.7% by 2028-29. This is through increasing total hours worked by the equivalent of more than 300,000 full-time workers and boosting business investment by £14 billion.
The Government provided an unprecedented package of support for businesses with energy costs through the Energy Bill Relief Scheme (EBRS) and the Energy Bill Discount Scheme. Together these schemes have provided around £7.5 billion to businesses for energy costs. In addition, the British Industry Supercharger, announced in February 2023, will significantly reduce electricity costs for key energy intensive industries such as steel, mining, batteries, and critical minerals.
On taxation, at Autumn Statement 2023 the Government made full expensing permanent, representing a tax cut to companies of over £10bn a year, and ensuring the UK has one of the most generous capital allowances regimes in the world. The Government also abolished the obligation to pay Class 2 self-employed NICs. Both announcements demonstrate the Government’s ongoing commitment to tax simplification.
In addition, the Government recognises that accounting for VAT can be a burden on small businesses. This is why we announced at Spring Budget 2024 that the VAT threshold will be raised from £85,000 to £90,000 from 1 April 2024. At £90,000, the UK has a higher VAT registration threshold than any EU Member State and the joint highest in the OECD. This keeps the majority UK businesses out of VAT altogether.
Asked by: Lord Rooker (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the likely effect on economic growth and productivity of (1) revaluing council tax bands by reference to current market rates, and (2) abolishing stamp duty in favour of a reformed housing taxation arrangement.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
The government has no current plans to revalue council tax bands by reference to current market rates or to abolish Stamp Duty Land Tax in favour of a reformed housing taxation arrangement. The government continues to keep all tax policy under review.
Asked by: Lord Bishop of St Albans (Bishops - Bishops)
Question to the HM Treasury:
To ask His Majesty's Government, further to the Written Answer by Baroness Vere of Norbiton on 13 February (HL2098), when the consultation on the Uber Britannia Ltd v Sefton MBC High Court ruling will be published.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
As announced at Spring Budget, the Government will launch the consultation on the impacts of the July 2023 High Court ruling in Uber Britannia Ltd v Sefton MBC in April.
Asked by: Gregory Campbell (Democratic Unionist Party - East Londonderry)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the preparedness of (a) self-employed people and (b) landlords with an income over £50,000 to begin using Making Tax Digital for income tax self-assessment from April 2026.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
HMRC published research in 2022 indicating that two thirds of those with income above £10,000 felt capable of changing to Making Tax Digital for Income Tax (MTD for ITSA). Those with income over £50,000 are already more likely to be using digital tools than smaller businesses; many will already be using MTD for VAT.
HMRC has an established programme of social research, focused on understanding the characteristics and support needs of its customers. This will inform an ongoing communications campaign, raising awareness of MTD for ITSA and supporting HMRC’s customers to prepare.
Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate his Department has made of the potential revenue from the abolition of non-domiciled status in 2024.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
Further information on the changes to the taxation of non-UK domiciled individuals, or non-doms, announced at Spring Budget 2024 can be found on GOV.UK here:
Spring Budget 2024: Non-UK domiciled individuals policy summary - GOV.UK (www.gov.uk)
Technical note: Changes to the taxation of non-UK domiciled individuals - GOV.UK (www.gov.uk)
Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has made an assessment of the potential merits of introducing transitional measures for UK citizens with non-domiciled status living abroad in the event of changes to that status.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
Further information on the changes to the taxation of non-UK domiciled individuals, or non-doms, announced at Spring Budget 2024 can be found on GOV.UK here:
Spring Budget 2024: Non-UK domiciled individuals policy summary - GOV.UK (www.gov.uk)
Technical note: Changes to the taxation of non-UK domiciled individuals - GOV.UK (www.gov.uk)