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 - Shadow Leader of the House of Commons
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 - Shadow Leader of the House of Commons
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 - Shadow Leader of the House of Commons
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 - Shadow Leader of the House of Commons
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 - Shadow Leader of the House of Commons
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 - Shadow Leader of the House of Commons
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 - Shadow Leader of the House of Commons
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.
Asked by: Alberto Costa (Conservative - South Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether individuals who run and manage rental properties are eligible for the Self Employment Income Support Scheme.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The new Self-Employment Income Support Scheme (SEISS) will help those with lost trading profits due to COVID-19. It means the UK will have one of the most generous self-employed COVID-19 support schemes in the world. Property income is distinct from trading income and is therefore not covered by the SEISS.
Those who are not eligible for the SEISS may be eligible for other elements of the Government’s financial support package. Following urgent discussions with the banking industry, the mortgage payment holiday of up to three months will be extended to landlords whose tenants are?experiencing difficulties?due to coronavirus.? In addition, the Government has announced immediate steps to give businesses access to cash to pay rent, salaries or suppliers. More information about the full range of business support measures is available at www.businesssupport.gov.uk/coronavirus-business-support.
Asked by: Alberto Costa (Conservative - South Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans his Department has to review the income threshold for child benefit eligibility.
Answered by Jesse Norman - Shadow Leader of the House of Commons
Child Benefit remains a universal benefit. However, 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. The charge increases gradually for taxpayers with incomes between £50,000 and £60,000.
The Government believes that these are currently the right levels for the HICBC thresholds, but as with all elements of tax policy this remains under review.