Asked by: Catherine West (Labour - Hornsey and Friern Barnet)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will extend the VAT exemption to the hire of swimming pools and associated facilities hired by swimming teachers.
Answered by Lucy Frazer
The hiring of swimming pools and swimming lessons qualify for an exemption from VAT when certain conditions are met, as outlined in VAT Notice 742 Paragraph 5. The Government has no plans to change this.
Extending the current exemption would impose additional pressure on the public finances, to which VAT makes a significant contribution. VAT raised around £130 billion in 2019-20, and helps to fund key spending priorities, including on health, education, and defense.
Asked by: Catherine West (Labour - Hornsey and Friern Barnet)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make it his policy to abolish VAT on the hire of swimming pools and associated facilities.
Answered by Lucy Frazer
The hiring of swimming pools and swimming lessons qualify for an exemption from VAT when certain conditions are met, as outlined in VAT Notice 742 Paragraph 5. The Government has no plans to change this.
Extending the current exemption would impose additional pressure on the public finances, to which VAT makes a significant contribution. VAT raised around £130 billion in 2019-20, and helps to fund key spending priorities, including on health, education, and defense.
Asked by: Catherine West (Labour - Hornsey and Friern Barnet)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what representations he has received on reducing the level of VAT payable on swimming lessons for children; and if he will make a statement.
Answered by Lucy Frazer
The hiring of swimming pools and swimming lessons qualify for an exemption from VAT when certain conditions are met, as outlined in VAT Notice 742 Paragraph 5. The Government has no plans to change this.
Extending the current exemption would impose additional pressure on the public finances, to which VAT makes a significant contribution. VAT raised around £130 billion in 2019-20, and helps to fund key spending priorities, including on health, education, and defense.
Asked by: Catherine West (Labour - Hornsey and Friern Barnet)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make it his policy to increase the £450,000 property cost limit for Lifetime ISAs in line with house price inflation.
Answered by John Glen
The Lifetime ISA is intended to support younger people saving for their first home or for later life by offering a generous government bonus of 25% on up to £4,000 of savings each year. These funds, including the government bonus, can be used to purchase a first home up to the value of £450,000.
The Government considers that the £450,000 price cap is suitable to support the majority of first-time buyers across the UK (who typically purchase less expensive properties than other buyers), while ensuring sustainable public finances.
The most recent Office for Budget Responsibility forecast stated that bonus payments will have an exchequer cost of £3.7 billion between 2021 and 2027. The price cap ensures that this significant investment of public money is more precisely targeted towards households that may find it more difficult to get onto the property ladder.
First-time buyers who can purchase a home valued over £450,000 are likely to have an income significantly above that of the average household in the UK and are therefore more likely to be able to purchase a first home without the support of this scheme.
The Government continues to keep all aspects of savings policy under review.
Asked by: Catherine West (Labour - Hornsey and Friern Barnet)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans for the Business Rates: Covid-19 additional relief fund to assist suppliers as the economy reopens following the outbreak covid-19; and if he will make a statement.
Answered by Lucy Frazer
The Covid-19 Additional Relief Fund will be allocated to Local Authorities (LAs) which will use their knowledge of local businesses and the economy to make the awards.
Formal guidance to LAs will follow in due course, which will set out the specific considerations that they should consider when providing relief.