Asked by: James Wild (Conservative - North West Norfolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had with the Secretary of State for Culture, Media and Sport on launching a full review of Gift Aid, including digital automation and linking donations to personal tax accounts.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC has worked collaboratively with a broad range of charity sector stakeholders and other government departments including DCMS to explore the potential of the Future of Gift Aid project and wider Gift Aid modernisation.
Asked by: James Wild (Conservative - North West Norfolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the Future of Gift Aid pilot, and what assessment has been made of its potential impact on the charity sector.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC has worked collaboratively with a broad range of charity sector stakeholders and other government departments including DCMS to explore the potential of the Future of Gift Aid project and wider Gift Aid modernisation.
Asked by: James Cartlidge (Conservative - South Suffolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the oral statement made by the Chancellor of the Exchequer of 9 March 2026 on Middle East: Economic Update, Official Report, columns 43-45, whether there is a upper limit on the amount her Department can draw from the special reserve.
Answered by James Murray - Chief Secretary to the Treasury
Iran’s indiscriminate attacks are a threat to Britain, our allies and our partners in the region.
As she set out in the House on 9 March, the Chancellor has approved access for the Ministry of Defence to the special reserve to deploy additional capabilities in the Middle East. The net additional costs of operations will be funded by the Treasury.
We do not yet know how long the conflict will last or what further action will be required, but the Chancellor is being responsive in an uncertain world, and is protecting the public finances in the national interest.
Asked by: James Cartlidge (Conservative - South Suffolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the oral statement made by the Chancellor of the Exchequer of 9 March 2026 on Middle East: Economic Update, Official Report, columns 43-45, for how long will her Department be permitted to spend money allocated from the special reserve.
Answered by James Murray - Chief Secretary to the Treasury
Iran’s indiscriminate attacks are a threat to Britain, our allies and our partners in the region.
As she set out in the House on 9 March, the Chancellor has approved access for the Ministry of Defence to the special reserve to deploy additional capabilities in the Middle East. The net additional costs of operations will be funded by the Treasury.
We do not yet know how long the conflict will last or what further action will be required, but the Chancellor is being responsive in an uncertain world, and is protecting the public finances in the national interest.
Asked by: James Wild (Conservative - North West Norfolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she has taken to review Groups 4 and 12 of Schedule 8 of the Value Added Tax Act 1994 to ensure disability VAT reliefs reflect modern assistive technology.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
We maintain a longstanding principle that reliefs should be targeted to balance support with fiscal sustainability. Modern consumer technologies, while helpful to disabled users, are also intended for use by those without impairments hence do not meet the statutory test of being designed solely for disabled people.
We recognise the vital role that assistive technologies can play in improving independence and quality of life. The government keeps all taxes under review as part of the policy making process and decisions on tax policy are taken by the Chancellor at a fiscal event.
Asked by: Angus MacDonald (Liberal Democrat - Inverness, Skye and West Ross-shire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate her Department has made of the average time spent by businesses with turnover below £250,000 on VAT compliance, including preparing returns and maintaining records.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC does not estimate the administrative cost to businesses with a turnover below £250,000 for processing and submitting VAT returns, as the cost can vary between businesses, regardless of their turnover. Administrative costs are largely dependent on their individual business processes and the nature and complexity of their record keeping.
Asked by: Angus MacDonald (Liberal Democrat - Inverness, Skye and West Ross-shire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate her Department has made of the administrative burden to the Treasury of processing VAT receipts for Businesses with a turnover under £250,000.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC has not made an estimate of the administrative burden to the Treasury for processing VAT receipts for businesses with a turnover below £250,000. HMRC measures its overall operational costs across all taxes and does not hold this information at the level of granularity required to isolate costs attributable to businesses with a turnover under £250,000.
Asked by: James Wild (Conservative - North West Norfolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has had discussions with the Secretary of State for Culture, Media and Sport on updating HMRC guidance and amending Group 15 of Schedule 8 to the Value Added Tax Act 1994 to not exclude social media advertising from the zero‑rating relief for charity advertising.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services. VAT is the UK’s third largest tax, forecast to raise £180 billion in 2025/26. Taxation is a vital source of revenue that helps to fund vital public services including schools and hospitals.
Charities already benefit from a reduced (5%) or zero rate of tax when purchasing some goods and services. More information about VAT relief for charities can be found here: VAT for charities: What qualifies for VAT relief - GOV.UK. The Government has no plans to broaden this list of goods and services to include social media advertising, but takes steps elsewhere in the tax system to ensure that charities receive treatment that takes account of their unique status and invaluable contribution.
Our tax regime for charities, including gift aid and an exemption from paying business rates, is among the most generous of anywhere in the world, with tax reliefs for charities and their donors worth just over £6 billion for the tax year to April 2024.
Asked by: James Wild (Conservative - North West Norfolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential impact of VAT on social media advertising on the reach of charity campaigns aimed at vulnerable groups who predominantly consume information online.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services. VAT is the UK’s third largest tax, forecast to raise £180 billion in 2025/26. Taxation is a vital source of revenue that helps to fund vital public services including schools and hospitals.
Charities already benefit from a reduced (5%) or zero rate of tax when purchasing some goods and services. More information about VAT relief for charities can be found here: VAT for charities: What qualifies for VAT relief - GOV.UK. The Government has no plans to broaden this list of goods and services to include social media advertising, but takes steps elsewhere in the tax system to ensure that charities receive treatment that takes account of their unique status and invaluable contribution.
Our tax regime for charities, including gift aid and an exemption from paying business rates, is among the most generous of anywhere in the world, with tax reliefs for charities and their donors worth just over £6 billion for the tax year to April 2024.
Asked by: James Wild (Conservative - North West Norfolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made about the level of financial burden placed on charities arising from having to pay VAT on targeted social media advertising.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services. VAT is the UK’s third largest tax, forecast to raise £180 billion in 2025/26. Taxation is a vital source of revenue that helps to fund vital public services including schools and hospitals.
Charities already benefit from a reduced (5%) or zero rate of tax when purchasing some goods and services. More information about VAT relief for charities can be found here: VAT for charities: What qualifies for VAT relief - GOV.UK. The Government has no plans to broaden this list of goods and services to include social media advertising, but takes steps elsewhere in the tax system to ensure that charities receive treatment that takes account of their unique status and invaluable contribution.
Our tax regime for charities, including gift aid and an exemption from paying business rates, is among the most generous of anywhere in the world, with tax reliefs for charities and their donors worth just over £6 billion for the tax year to April 2024.