Asked by: Peter Kyle (Labour - Hove)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when his Department plans to respond to the Office for Tax Simplification’s Review, Taxation and Life Events: Simplifying tax for individuals, published 10 October 2019.
Answered by Jesse Norman
The OTS undertook the review of ‘Taxation and Life Events’ as an own initiative review.
Officials will continue to consider the recommendations made in ‘Taxation and Life Events’ carefully.
Asked by: Peter Kyle (Labour - Hove)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of capping (a) all charges, (b) custody charges and (c) transfer charges on (i) SIPPs and (ii) ISAs.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Government and regulators have undertaken a range of initiatives in relation to charges on investment products.
The Financial Conduct Authority (FCA) has conducted an extensive market study into the asset management sector, including the examination of costs and charges. They have introduced a range of remedies to address the issues they found. In particular, the FCA have strengthened and clarified the duty on managers of investment funds to act in the best interests of their investors. New rules will require asset managers to assess the value for money of each fund against a non-exhaustive list of prescribed elements, including whether charges are reasonable in relation to the costs incurred in delivering the service, and the quality of the service provided. The managers must conclude that each fund offers good VfM or take corrective action if it does not and explain the assessment annually in a report made available to the public.
The FCA also identified concerns that charges might not always be visible to investors and that investors might not pay sufficient attention to charges or understand what they represent. In response, the FCA introduced a single all-in fee to increase the visibility of all charges taken from the fund and impose more discipline on overspend relative to charging estimates.
The FCA has also considered the role of charges as part of its work on competition in non-workplace pensions, including self-invested pension plans (SIPPs). They found that charges in this market are often too complex for consumers to be able to compare and that similar customers can pay very different charges. The FCA concluded that it would not be appropriate to recommend direct price intervention such as a cap at this stage, but it is considering next steps in the context of its upcoming work on driving value for money across the pensions sector. The FCA’s Feedback Statement on this topic is seeking views on what remedies would be appropriate and will close in October 2019.
Early exit charges were banned or capped in personal pension schemes, including SIPPs, from March 2017. Information obtained by the FCA and the Pensions Regulator (TPR) showed that early exit charges presented a barrier to accessing the pension freedoms for a significant minority of people in personal and occupational pension schemes. Following consultation, the Government took steps to remove these barriers by capping early exit charges at 1% for existing scheme members and banning them for new members.
The charges imposed in respect of investments held within Stocks and Shares ISAs are a matter for individual ISA managers. ISA managers must allow investors to transfer existing Stocks and Shares ISAs to an alternative manager.
Asked by: Peter Kyle (Labour - Hove)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what his policy is on making solarized buildings eligible for business rates relief.
Answered by Jesse Norman
The Government is continuing to support the take up of solar panels by maintaining the business rates exemption for solar power generating equipment of less than 50kW, between the time of its installation and the next business rates revaluation.
Where energy generated is not for self-consumption, solar panels benefit from the tools of the trade exemption and are not rateable.
Asked by: Peter Kyle (Labour - Hove)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if the Government will make an assessment of the potential merits of exempting solar panels from VAT.
Answered by Jesse Norman
There may be flexibility to amend VAT rules on solar panels in the future, but while the UK is a member of the EU, it is required to comply with EU VAT rules.
Asked by: Peter Kyle (Labour - Hove)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what feedback he has received from families affected by the High Income Child Benefit Charge.
Answered by Jesse Norman
The Government introduced the High Income Child Benefit Charge (HICBC) from January 2013 to ensure that support is targeted at those who need it most. It applies to anyone with an individual income over £50,000, who claims Child Benefit or whose partner claims it, regardless of the make-up of their household.
HM Revenue and Customs (HMRC) continue to consider ways in which they can improve communications to raise awareness of HICBC. HMRC recently undertook external research and used the findings to make changes to their guidance and communications on HICBC. They also improved the Child Benefit claim form to make clearer what choices people have on HICBC when they claim the benefit.
Asked by: Peter Kyle (Labour - Hove)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to ensure that banks provide sufficient support to elderly and vulnerable customers to access their services.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government believes that everyone, wherever they live and especially the most vulnerable, should have access to essential banking services. Since 2017, the Post Office has had an agreement with the main high street banks, which enables 99% of personal banking customers and 95% of SME banking customers to carry out their everyday banking at any one of their 11,500 branches across the UK. The Government has invested over £2bn in the Post Office since 2010 to protect and maintain the network.
The Government also believes that having a bank account is key to enabling people to manage their money on a day-to-day basis effectively, securely and confidently. The nine largest personal current account providers in the UK must offer basic bank accounts to customers who do not have a bank account or who are not eligible for a bank's standard current account.
Asked by: Peter Kyle (Labour - Hove)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to ensure that banking services are accessible to (a) elderly customers, (b) vulnerable customers and (c) customers without internet access.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government believes that everyone, wherever they live and especially the most vulnerable, should have access to essential banking services. Since 2017, the Post Office has had an agreement with the main high street banks, which enables 99% of personal banking customers and 95% of SME banking customers to carry out their everyday banking at any one of their 11,500 branches across the UK. The Government has invested over £2bn in the Post Office since 2010 to protect and maintain the network.
The Government also believes that having a bank account is key to enabling people to manage their money on a day-to-day basis effectively, securely and confidently. The nine largest personal current account providers in the UK must offer basic bank accounts to customers who do not have a bank account or who are not eligible for a bank's standard current account.
Asked by: Peter Kyle (Labour - Hove)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the terms of reference are for the investigation by the Financial Conduct Authority into the failure of London Capital & Finance.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Further details of this investigation will be published shortly.
Asked by: Peter Kyle (Labour - Hove)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what level of (a) financial resources and (b) personnel has been allocated to the investigation by the Financial Conduct Authority into the issues raised by the failure of London Capital & Finance.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Further details of this investigation will be published shortly.
Asked by: Peter Kyle (Labour - Hove)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the timescale is for the investigation by the Financial Conduct Authority into the failure of London Capital & Finance.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Further details of this investigation will be published shortly.