Asked by: Edward Morello (Liberal Democrat - West Dorset)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of enabling people to Gift Aid donations made to certified carbon offsetting projects.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government recognises the vital role played by the charity sector and the generosity of the British public. That is why we supported charitable giving with over £1.7billion in Gift Aid in tax year 2025.
Donations to UK registered charities recognised by HMRC, that are involved in or run certified carbon credit projects, are already allowable for Gift Aid, an example being ‘The Woodland Trust’.
The UK Government is a strong supporter of the responsible voluntary use of high-integrity carbon and nature credits as part of climate and nature strategies. This commitment is reflected in the launch of the Principles for Voluntary Carbon and Nature Market Integrity and the government consultation which closed in July on their operationalisation, which will further the UK's ambition to become the green finance capital of the world.
Asked by: Edward Morello (Liberal Democrat - West Dorset)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions her Department has had with mortgage providers on access to finance for ex-Right to Buy properties.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
HM Treasury is regularly in contact with mortgage lenders on all aspects of their mortgage business to understand their position and current lending conditions. However, the pricing of mortgages, including the availability of mortgage finance for particular properties, is a commercial decision for lenders in which the Government does not intervene.
I would encourage any prospective homeowner to shop around and speak to a mortgage broker in order to find the best possible mortgage product for their circumstances.
Asked by: Edward Morello (Liberal Democrat - West Dorset)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps her Department is taking to support people facing difficulties in obtaining mortgages for ex-Right to Buy properties.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
HM Treasury is regularly in contact with mortgage lenders on all aspects of their mortgage business to understand their position and current lending conditions. However, the pricing of mortgages, including the availability of mortgage finance for particular properties, is a commercial decision for lenders in which the Government does not intervene.
I would encourage any prospective homeowner to shop around and speak to a mortgage broker in order to find the best possible mortgage product for their circumstances.
Asked by: Edward Morello (Liberal Democrat - West Dorset)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of charging VAT on carbon offset donations on levels of public engagement with climate action.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Payments that are freely given without the expectation of receiving something in return are not in the scope of VAT. This is a fundamental principle of how VAT operates. Donations made to carbon projects are outside the scope of VAT. This means that VAT should not be charged on carbon offset donations. There are no plans to change this position.
Asked by: Edward Morello (Liberal Democrat - West Dorset)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make it her policy to exempt donations to verified carbon offsetting projects from VAT.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Payments that are made voluntarily, without expectation of receiving goods or services in return, fall outside the scope of VAT. This is a core principle of the VAT system. As such, donations to verified carbon offsetting projects are not subject to VAT, and VAT should not be charged on these donations.
Asked by: Edward Morello (Liberal Democrat - West Dorset)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential impact of anti-money laundering compliance requirements on the financial viability of small and medium-sized law firms.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
I refer the hon. Member to the answer to UIN 67269.
Asked by: Edward Morello (Liberal Democrat - West Dorset)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had with the Financial Conduct Authority on the adequacy of its money laundering risk management policies.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
The government meets regularly with the Financial Conduct Authority (FCA) to discuss a range of topics. The FCA is required under the Money Laundering Regulations (MLRs) to assess the risks of money laundering for the businesses it supervises for compliance with the MLRs; to maintain risk profiles for these businesses; and to take a risk-based approach to supervision. The Treasury collects a range of information from the FCA to evaluate its approach to managing money laundering risk and publishes it as part of the annual report on anti-money laundering and counter-terrorist financing supervision. The latest annual report is available here: https://www.gov.uk/government/publications/anti-money-laundering-and-countering-the-financing-of-terrorism-supervision-report-2023-24
Asked by: Edward Morello (Liberal Democrat - West Dorset)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she is taking steps to review the oversight mechanisms of the Financial Conduct Authority.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
The government and Parliament exercise oversight over the Financial Conduct Authority (FCA) in a number of ways, including through the government’s remit letters, which set out elements of the government’s economic policy to which the FCA must have regard, and parliamentary scrutiny of the FCA’s Annual Reports. Senior representatives of the FCA also regularly give evidence to parliamentary committees, where the FCA’s performance and operational effectiveness is scrutinised.
The government is currently consulting on a number of proposed targeted changes to the regulatory environment for financial services, designed to support the government’s overall ambition to ensure that regulation supports growth, is targeted and proportionate, is transparent and predictable, and adapts to keep pace with innovation.
The consultation includes a proposal to require the FCA and the Prudential Regulation Authority to set out long-term strategies for how they will advance their objectives, including their secondary objectives to facilitate growth and international competitiveness. This will ensure that stakeholders, including regulated firms in the sector, are able to fully understand the UK’s strategy towards the sector. This will also ensure that government and parliament are able to effectively hold the regulators to account for how they translate their objectives into different priorities.
As part of the consultation, the government also confirmed it will review the regulators’ overall reporting structure to focus it on the regulators’ core functions and objectives, minimising the number of documents stakeholders and Parliament must engage with for effective scrutiny.
Asked by: Edward Morello (Liberal Democrat - West Dorset)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential impact of anti-money laundering regulations on transaction times in property conveyancing.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
Under the Money Laundering Regulations, estate agents and legal professionals must apply customer due diligence measures to mitigate the risk that property purchases are used to launder the proceeds of crime. These measures include checking and verifying the identity of buyers and sellers and assessing the purpose and intended nature of the transaction. The Regulations enable a proportionate, risk-based approach to customer due diligence, meaning conveyancers and others should actively assess and respond to the specific risks in each transaction. The Legal Sector Affinity Group (LSAG) guidance provides detailed advice to legal professionals on how to comply proportionately with these requirements in property transactions. HM Treasury has regular discussions with representatives of regulated sectors, including conveyancers, to ensure the Regulations remain proportionate and effective.
Asked by: Edward Morello (Liberal Democrat - West Dorset)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has had recent discussions with property lawyers on the potential impact of anti-money laundering regulations on the homebuying process.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
Under the Money Laundering Regulations, estate agents and legal professionals must apply customer due diligence measures to mitigate the risk that property purchases are used to launder the proceeds of crime. These measures include checking and verifying the identity of buyers and sellers and assessing the purpose and intended nature of the transaction. The Regulations enable a proportionate, risk-based approach to customer due diligence, meaning conveyancers and others should actively assess and respond to the specific risks in each transaction. The Legal Sector Affinity Group (LSAG) guidance provides detailed advice to legal professionals on how to comply proportionately with these requirements in property transactions. HM Treasury has regular discussions with representatives of regulated sectors, including conveyancers, to ensure the Regulations remain proportionate and effective.