Asked by: Alberto Costa (Conservative - South Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has made an assessment of the potential merits of newly converted electric vehicles having zero-rated road tax.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The Government are aware of the small market for EV conversions. Vehicles originally designed to run on electricity currently attract a nil rate of Vehicle Excise Duty (VED), but this is not necessarily the case for vehicles converted from internal combustion engine (ICE) to electric vehicle (EV). Vehicles first registered after 1 March 2001 which are converted to electric are not able to have their VED treatment changed.
The Government is strongly committed to the safety of UK road users. Therefore, in considering any changes to the VED treatment of converted vehicles, it must make sure that it does not indirectly encourage unsafe practices. The variety of conversion options, carried out with differing degrees of technical expertise, gives rise to complex safety and operational challenges.
However, as with all taxes, HMT and DfT will work closely to keep this policy under review as the market continues to develop.
Motorists should check the resultant tax liabilities of their vehicle before agreeing to undertake a conversion from ICE to EV.
Asked by: Alberto Costa (Conservative - South Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to help ensure the affordability of gluten free products.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
It is not for the UK Government to set retail food prices or to comment on day-to-day commercial decisions by retailers. However, we continue to monitor prices closely using the Consumer Prices Index and to work with industry to promote transparency for consumers.
Gluten free foods, specifically, are regulated under general food law in England and provided to all coeliac patients on NHS prescription. Extensive arrangements are in place to help people afford NHS prescriptions, including a broad range of NHS prescription charge exemptions. Together these exemptions currently mean around 89% of NHS prescription items are dispensed in the community free of charge.
Asked by: Alberto Costa (Conservative - South Leicestershire)
Question to the HM Treasury:
To ask the Chancellor o the Exchequer, what assessment she has made of the potential effect on consumers of increases to custom charges on products sent between the EU and the UK.
Answered by Jesse Norman
The UK-EU Trade and Cooperation Agreement seeks to reduce the costs for traders of customs processes introduced following the end of the transition period with the EU. It supports efficient customs arrangements and ensures that goods originating in the EU or UK are not subject to tariffs. For goods that do not meet requirements of the rules of origin, tariffs still apply. Products sent between the EU to the UK may also be liable for other charges such as excise duty and import VAT. The extent to which any of these charges and impacts feed through to consumer prices is based on a range of factors including individual business decisions.Asked by: Alberto Costa (Conservative - South Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of reducing VAT on sales of alcohol to support the pub industry.
Answered by Jesse Norman
The temporary reduced rate of VAT was introduced on 15 July to support the cash flow and viability of over 150,000 businesses and protect 2.4 million jobs in the hospitality and tourism sectors, and is due to run until 31 March 2021.
The Government has also announced a significant support package to help businesses from a whole range of sectors through the winter months, which includes an extension of the Coronavirus Job Retention Scheme, an extension of the Self-Employment Income Support Scheme grant, and an extension of the application window for the Government-backed loan schemes. Alcohol duty was frozen at Budget 2020 to help pubs and the alcoholic drinks sector.
The Government keeps all taxes under review, and any future tax decisions will be made at Budget.
Asked by: Alberto Costa (Conservative - South Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the effect on British yacht and boat owners of the requirement to pay a second VAT payment upon their return to UK waters after the end of the transition period.
Answered by Jesse Norman
Returned Goods Relief from customs duties and import VAT will be extended to include goods in the European Union at the end of the transition period that otherwise meet the conditions for relief.
Asked by: Alberto Costa (Conservative - South Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential merits of excluding privately run social care day centres from the requirement to pay VAT.
Answered by Jesse Norman
Many care services provided by charities, public bodies and regulated private welfare institutions to elderly people are exempt from VAT, meaning no VAT is charged on their services.
Introducing a zero-rate of VAT on adult social care would cost nearly £2 billion per year, and this must be viewed in the context of about £50 billion of other requests for relief from VAT since the EU referendum.
The Government has no current plans to review the VAT treatment of these services.
Asked by: Alberto Costa (Conservative - South Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if his Department will make an assessment of the potential merits of backdating the temporary reduction in Stamp Duty Land Tax to 1 July 2020.
Answered by Jesse Norman
To boost the housing market and confidence, the Government has decided to cut Stamp Duty Land Tax (SDLT) by temporarily increasing the nil band rate of SDLT to £500,000. This applies from 8 July 2020 to 31 March 2021 and will not be backdated
Property sales which have exchanged but not yet completed will still be eligible to take advantage of the Stamp Duty holiday.
Asked by: Alberto Costa (Conservative - South Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether businesses affected by the local lockdown in Leicester will be able to furlough new staff members.
Answered by Jesse Norman
The lockdown in Leicester reverses the opening of non-essential retail shops and postpones the re-opening of hospitality businesses such as pubs and restaurants. The furlough scheme runs until October and employers are not required to contribute until August. Hence, affected businesses can continue to have access to the scheme throughout the local lockdown, as they have done so far.
To enable the introduction of flexible furloughing, and to support those already furloughed in getting back to work, claims from July onwards are restricted to employers who have used the scheme before and previously furloughed employees.
Closing the scheme to new entrants is necessary for a gradual closure of the scheme. The focus is now on bringing those currently furloughed back into productive employment.
Asked by: Alberto Costa (Conservative - South Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of introducing a stamp duty holiday for people purchasing new homes as a means of stimulating the economy after the covid-19 outbreak.
Answered by Jesse Norman
Vital measures to control the spread of COVID-19, such as social distancing, have resulted in a drop in property transactions. From 13 May in England, viewings can once again be held as long as social distancing measures remain in place, and people can move house safely.
The Government does not currently have any plans to change the amount of Stamp Duty on property purchases. However, the Government keeps all tax policy under review, including as part of the response to the COVID-19 pandemic.
Asked by: Alberto Costa (Conservative - South Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the number of people who are ineligible for assistance from the Self-Employment Income Support Scheme due to their public sector pension accounting for over 50 per cent of their income.
Answered by Jesse Norman
HMRC are unable to report from the information held how many self-employed people may not be eligible for the Self-Employment Income Support Scheme as a result of their public sector pension.
The SEISS, including the £50,000 threshold and comparison between trading profits and other income, is designed to target those most in need, and who are most reliant on their self-employment income.
Some 95 per cent of people who receive the majority of their income from self-employment could benefit from this scheme.
Those who are not eligible for the SEISS may still benefit from other support. Individuals may have access to a range of grants and loans depending on their circumstances, and the SEISS supplements the significant support already announced for UK businesses, including the Bounce Back Loan Scheme for small businesses, the Coronavirus Business Interruption Loan Scheme, and the deferral of tax payments.