Oral Answers to Questions

Debate between David Gauke and Mark Lazarowicz

Tuesday 9th December 2014 Commons Chamber

[Mr Gauke]

That particular measure has not brought in as much as was forecast, but I can point to others that have brought in more than was forecast. One example is disguised remuneration, which the Office for Budget Responsibility highlighted last week and has brought in more than was anticipated. We anticipated that it would bring in £750 million a year; it will bring in more than that. By the way, that measure was opposed by the Labour party.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

10. What recent assessment he has made of the effect of the housing market on the economy.

Oral Answers to Questions

Debate between David Gauke and Mark Lazarowicz

Tuesday 4th November 2014 Commons Chamber

[Mr Gauke]

My hon. Friend raises an important point. We often heard Labour Members say that they were going to oppose a tax cut for hedge funds. It turned out that it was not a tax cut for hedge funds but a tax cut that benefits pension funds, yet they want to reverse it.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

While the Minister is talking about cutting tax on pensions, will he spare a thought for the 4,000 members of the British Midland International pension scheme who lost considerable sums of pension entitlement when their airline was taken over? Lufthansa offered them substantial compensation, but Her Majesty’s Revenue and Customs is now insisting on taxing it. What is he doing about that?

[Mr Gauke]

I am grateful for the hon. Gentleman’s question and I have met a couple of hon. Members to discuss the issue. Her Majesty’s Revenue and Customs needs to apply the law as it currently stands, but that does not give it a great deal of discretion. This is a complicated matter and I am more than happy to set out details in writing for the hon. Gentleman.

Finance Bill

Debate between David Gauke and Mark Lazarowicz

Tuesday 3rd July 2012 Commons Chamber

[Mr Gauke]

The arrangements that will be in place following the legislation will mean that repairs and alterations will be chargeable for VAT. However, the listed places of worship scheme will apply to both types of work. It has been the case for some time that repairs involved the payment of VAT. The listed places of worship scheme will enable people to reclaim the VAT costs relating to those repairs. An extension—which is an alteration, rather than a repair—will now have VAT charged to it, but it will be possible to reclaim it through that same scheme. The scheme is now more generously funded than it was before the Budget, which means that a higher proportion of the costs that the churches would have incurred will now be able to be reclaimed. We have taken steps that the churches have widely welcomed.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

I am sorry to have missed the beginning of the Minister’s remarks on this subject. I was actually checking up on certain aspects of a similar issue in my constituency. He said that the Church of England was content with the arrangements, but I hope that he will accept that it is not just the Church of England that is involved. I have a lot of churches, places of worship and listed buildings in my constituency, and I have been contacted by a church that was in the advanced stages of preparing to carry out work that could be seriously affected by the proposals. Will the Minister guarantee that, if the funding for the scheme does not meet the requirements, he will look again at the level of funding provided? Will he also monitor the scheme closely to ensure that no extra bureaucracy is introduced that could delay projects that would otherwise go ahead?

[Mr Gauke]

The hon. Gentleman is absolutely right to say that not just the Church of England is involved. I said earlier, however, that the Church of England had led on behalf of all the churches on this matter. On his second point, we have made the transitional rules more generous for churches that were close to commencing work at the time of the Budget. I obviously cannot comment on the specific case in his constituency without knowing all the details, but I think that he will find that many cases in which plans had reached an advanced stage will benefit from the transitional rules. He mentioned the funding for the scheme. We believe that this is a generous settlement, but we will of course keep such matters under review. He also mentioned bureaucracy. The scheme is organised by the Department for Culture, Media and Sport, but the Treasury will also take a close interest in it. The two Departments have worked together very effectively on this matter, and we are keen to ensure that the scheme works in an adequate way. I would underline the point that the representations that we have received from the churches suggest that they are happy with the arrangements.

Scotland Bill

Debate between David Gauke and Mark Lazarowicz

Tuesday 21st June 2011 Commons Chamber

[Mr Gauke]

Partly following the strictures of the hon. Member for Dundee East, I would say that I am loth, at this stage of the debate, to make strong recommendations to the House about which new clauses should be accepted and which should be withdrawn and so on. I simply want to provide the context and argue why the Barnett formula should not be addressed in the Bill. I appreciate that there is a wide range of views on this issue, and that there are strong feelings throughout the UK. I dare say that a number of those views will be expressed this evening—indeed, this debate provides an opportunity for it. At this stage, however, I just want to draw the House’s attention to some of the difficulties with trying to address the matter in the Bill. I shall turn to the substance of the debate in a moment, but that is what I am seeking to do at the moment.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

I am sure that the hon. Gentleman will want to confirm that if my hon. Friend the Member for Vauxhall (Kate Hoey) got the reorganisation of the formula that she seems to want, the parts of the UK that would lose the most—the ones that are most overfunded by her definition—would be London, where she is an MP, and Northern Ireland, which I know she has a close interest in. If we are going to debate the matter, let us debate the facts rather than the myths.

[Mr Gauke]

As I said, I appreciate that there are strong views on this issue, and that they will be expressed this evening. Little did I know, though, that such strong views would be expressed quite so quickly among hon. Members in such close proximity to each other.

Scotland Bill

Debate between David Gauke and Mark Lazarowicz

Monday 14th March 2011 Commons Chamber

[Ann McKechin]

Again, I should like to ask the Exchequer Secretary a couple of technical questions about the implementation of the clause. He has defined in proposed new section 80J(2) the people who will not be liable to pay the tax in question. Perhaps he could clarify for the record that that relates to people acting in their official capacity, and that if they happen to have property in Scotland on a personal basis, they will still be liable for the tax.

Will the Government undertake that they will not appoint the day on which the tax powers will come into effect until the Scottish Government confirm that they have satisfactory legislation in effect? I realise that the proposed implementation date is 2015, and perhaps the Exchequer Secretary could confirm that that is still the Government’s intention. It is important that people with an interest in property have an early indication of when they can expect the tax to be changed.

[Mark Lazarowicz]

I, too, have a couple of questions, and I would be most grateful if the Exchequer Secretary could deal with them. Does he believe that the provisions of the clause mean that the tax will be applied at the same rate throughout Scotland, or will it be possible for different rates to apply to different parts of Scotland? At the moment, for example, there are times when stamp duty land tax is waived for certain areas that require special assistance. Could that still apply?

Will the Scottish Parliament have the ability to delegate the power in clause 28 to local authorities, for example, so that varied rates could be offered? I am aware that that would not normally be permissible, but the Exchequer Secretary will certainly remember the debate about the possibility of a local income tax in Scotland a couple of years ago. There was a suggestion that if the Scottish Parliament introduced such a tax, it would be ultra vires. That was never tested, because of course the legislation never went through. The suggestion was that a local income tax could give local authorities the power to levy income tax through the back door. Similarly, it could be suggested that they be given the power to vary stamp duty land tax if the Scottish Parliament allowed them to do so. I would very much appreciate some guidance on those points.

I do not want to skip ahead to clause 30, but the same question applies to tax on disposals to landfill—will there be a Scottish rate, or could it be varied? Perhaps the Minister could give me the same reply to deal with both clauses.

[Mr Gauke]

As far as the list contained in proposed section 80J is concerned, I can provide the reassurance that transactions will be non-taxable only when people are acting in their official capacity. There is not some perk being made available to particular people.

The switching-off of stamp duty land tax will be achieved by Treasury order. However, the UK Government will consult the Scottish Government in setting the switch-off date and will not disapply SDLT in Scotland until the Scottish Government have the necessary legislation and administrative arrangements in place for the devolved tax.

The Scottish Government will be able to delegate the SDLT power in question to local authorities, so the matter could be further localised.

[Mark Lazarowicz]

I thank the Exchequer Secretary for his answer on that point, which I think will be received with some interest in Scotland. My other, perhaps more substantial, question was whether the Scottish Government could implement a variable rate of SDLT, or whatever equivalent they wished to introduce, in different parts of Scotland. For example, could they decide that in certain areas of high unemployment there would be no SDLT, or a lower rate? Would that be within their powers?

[Mr Gauke]

Yes, that would be within the Scottish Government’s power. I hope that my points of clarification are helpful to the Committee, and that the clause will stand part of the Bill.

Question put and agreed to.

Clause 28 accordingly ordered to stand part of the Bill.

Clause 29

Disapplication of UK stamp duty land tax

Amendment proposed: 63, page 23, line 12, after ‘Treasury’, insert ‘by order’.—(Mr Gauke.)

[Mark Lazarowicz]

For the sake of clarity, the point that I raised about the Scottish Government’s ability—

--- Later in debate ---

[Mr Gauke]

Schedule 4, which is introduced by clause 29, makes consequential provisions in connection with the disapplication of stamp duty land tax in Scotland, and is in two parts. Part 1 provides for general amendments to stamp duty land tax legislation in consequence of stamp duty land tax ceasing to apply in Scotland, and part 2 provides for the Scottish Government to supply information to HMRC regarding Scottish land tax.

Amendment 33 makes changes to the stamp duty land tax first-time buyers relief to ensure that a person who has previously bought a property in Scotland cannot qualify for relief when he or she subsequently purchases a property in England, Wales or Northern Ireland. Amendment 34 omits a further reference to Scottish land law terminology.

Amendments 35 and 36 omit provisions in the Finance (No. 2) Act 2005 and the Public Finance and Accountability (Scotland) Act 2000, which is an Act of the Scottish Parliament relating to functions of the keeper of the registers of Scotland. Those relate to the registers of Scotland’s automated registration of title to land system, which includes facilities for returns and payment of stamp duty land tax.

Lastly, amendment 36 makes detailed modifications to the provisions in the Finance Act 2009 in relation to alternative finance investment bonds or sukuk. Those modifications reflect the fact that the stamp duty land tax relief will no longer apply to sukuk in relation to land in Scotland, although the provisions for capital gains and capital allowances will continue to apply. Those changes are essential to the proper operation of stamp duty land tax after the tax is disapplied in Scotland.

Amendment 33 agreed to.

Amendments made: 34, page 35, line 36, at end insert—

‘( ) In paragraph 10 (tenants’ obligations etc that do not count as chargeable consideration), in sub-paragraph (1)(a) omit “(in Scotland, the leased premises)”.’.

Amendment 35, page 36, line 9, at end insert—

‘Finance (No. 2) Act 2005

In section 47 of the Finance (No. 2) Act 2005 (e-conveyancing) omit—

(a) subsection (1);

(b) subsection (6)(b).’.

Amendment 36, page 36, line 12, at end insert—

‘Finance Act 2009

(1) Schedule 61 to the Finance Act 2009 (alternative finance investment bonds) is amended as follows.

(2) Paragraph 1 (interpretation) is amended as follows.

(3) In sub-paragraph (1)—

(a) before the definition of “HMRC” insert—

““effective date”, for a transaction relating to land in Scotland, is the date which would be the effective date (under section 119 of FA 2003) if Part 4 of FA 2003 applied to land in Scotland;”;

(b) omit the definition of “qualifying interest”.

(4) After sub-paragraph (1) insert—

(1A) In this Schedule “qualifying interest”—

(a) in relation to land in England and Wales or Northern Ireland, means a major interest in land (within the meaning given by section 117 of FA 2003) except that it does not include a lease for a term of years of 21 years or less;

(b) in relation to land in Scotland, means—

(i) the interest of an owner of land, or

(ii) the tenant’s right over or interest in a property subject to a lease,

except that it does not include a lease for a period of 21 years or less.”

(5) Paragraph 5 (conditions for operation of relief) is amended as follows.

(6) In sub-paragraph (6) (Condition D)—

(a) after “Condition D” insert “(which applies in the case of land in England and Wales or Northern Ireland)”;

(b) omit paragraph (b).

(7) In sub-paragraph (7) (charge or security for purposes of Condition D)—

(a) omit “or security”;

(b) in paragraph (a) omit “, or a security ranking first granted over,”.

(8) In paragraph 6(1)(a) (relief from stamp duty land tax) for “the United Kingdom” substitute “England and Wales or Northern Ireland”.

(9) In paragraph 7 (withdrawal of relief in certain circumstances)—

(a) in sub-paragraph (1) after “This paragraph applies if” insert “paragraph 6 applies but”;

(b) in sub-paragraph (2) after “This paragraph also applies if” insert “paragraph 6 applies but”.

(10) In paragraph 9 (discharge of charge when conditions for relief met) omit “or security”.

(11) In paragraph 11(2) (disapplication of CGT relief if charge not given) for “the United Kingdom” substitute “England and Wales or Northern Ireland”.

(12) In paragraph 12(1)(b) (CGT relief on second transaction) for “the United Kingdom” substitute “England and Wales or Northern Ireland”.

(13) In paragraph 18(5) and (6) (discharge of charge if original land replaced)—

(a) for “the United Kingdom” substitute “England and Wales or Northern Ireland”;

(b) omit “or security”.

(14) In paragraph 19(1) (HMRC to notify Registrar of discharge)—

(a) omit “or security”;

(b) omit paragraph (b).

Public Finance and Accountability (Scotland) Act 2000 (asp 1)

In section 9(1) of the Public Finance and Accountability (Scotland) Act 2000 (Keeper of the Registers of Scotland: financial arrangements) omit “(other than payments of stamp duty land tax)”.’.—(Mr Gauke.)

Schedule 4, as amended, agreed to.

Clause 30

Scottish tax on disposals to landfill

Question proposed, That the clause stand part of the Bill.

[Mark Lazarowicz]

I shall again raise the two points that I raised in relation to clause 29. Can the Scottish Government vary the tax rate applied to different parts of Scotland, and can they further devolve the power to local government to a greater or lesser extent if they so wish? I presume that the Scottish tax rate could be different from the rate that applies in England. If so, what measures can be taken to stop the flow of waste towards the part of the country that has the lower rate of landfill tax?

[Mr Gauke]

Clause 30 provides for the devolved tax on the disposal of waste to landfill sites in Scotland. One Calman commission recommendation on tax was to devolve landfill tax, which was endorsed by the Scottish Parliament when it voted its consent on 10 March.

The tax will be a devolved tax for the purposes of part 4A of the Scotland Act 1998, which is introduced by clause 24. That means that the Scottish Government and Parliament will have complete control over the design and administration of the Scottish landfill tax, allowing them to complement their wider waste policies and to legislate to introduce a devolved tax to replace the existing UK landfill tax in Scotland. I hope that answers the main questions asked by the hon. Member for Edinburgh North and Leith (Mark Lazarowicz).

The revenue raised by the tax will remain in Scotland for use by the Scottish Government. Clause 30 provides as blank a canvas as possible for the Scottish Government to design their tax by simply providing the power to introduce a tax on material disposed of as waste to landfill sites in Scotland. It will come into effect when the Bill receives Royal Assent, which will allow the Scottish Parliament to legislate for the devolved tax, and for the Scottish Government to make the necessary administrative arrangements. The clause, however, provides that the devolved tax cannot apply to disposals made before the date on which the existing UK landfill tax is disapplied in Scotland, as provided in clause 31.

To answer the question on landfill tax competition, the Government are fully devolving that matter. Those setting the structure and rates of landfill tax in Scotland will clearly want to take into account the factors that were raised, such is the nature of devolution in such areas.

Question put and agreed to.

Clause 30 accordingly ordered to stand part of the Bill.

Clause 31

Disapplication of UK landfill tax

Amendment made: 64, page 24, line 8, after ‘Treasury’, insert ‘by order’.—(Mr Gauke.)

Clause 31, as amended, ordered to stand part of the Bill.

Schedule 5 agreed to.

Clause 32

Borrowing by the Scottish Ministers

PAYE Contributions

Debate between David Gauke and Mark Lazarowicz

Wednesday 8th September 2010 Commons Chamber

[Mr Gauke]

Again, I confirm that HMRC will consider the matter sympathetically and will have flexibility to spread payments over up to three years.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

I was a bit disappointed by the Minister being a little dismissive of my right hon. Friend the Member for East Ham (Stephen Timms) when he suggested that it was now getting harder to get through to HMRC. My experience, and that of many MPs, is that when people try to get through to tax credits staff, they just get an answer machine saying that they should phone back another day. They cannot even leave a message.

The situation is getting worse, and although I do not want to blame the Minister for that, may I urge him to consider more than just additional call centres? He should also consider the possibility of providing not just a helpline but more support for bodies such as Citizens Advice and other information agencies. Does he agree that there is a danger of scam e-mails, with people trying to take advantage of those who will be in a difficult position, and that people will need somewhere reputable to get information and support so that others cannot try to get money out of their suffering?

[Mr Gauke]

I reiterate that additional resources will be provided for call centres—I believe there will be about 20% extra staff by the end of the month, with contingency for more if needed. HMRC is focusing on that. I welcome the hon. Gentleman’s remarks about tackling fraudsters, and we can take back to our constituents the message that they should be wary, particularly of e-mails. HMRC will not e-mail people about this matter.