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Written Question
Exports: VAT
Monday 28th September 2020

Asked by: Geoffrey Clifton-Brown (Conservative - The Cotswolds)

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate his Department has made of the potential number of job losses resulting from the ending of the VAT retail export scheme in the (a) retail and (b) tourism sectors.

Answered by Jesse Norman

The Government has announced that the VAT Retail Export Scheme will not be extended to EU visitors, and will be withdrawn for all non-EU visitors, following the end of the transition period. However, retailers will continue to be able to offer VAT-free shopping to non-EU visitors who purchase items in store and have them sent direct to their overseas addresses and this will be available to EU visitors following the end of the transition period.

The final costing will be subject to scrutiny by the independent Office for Budget Responsibility and will be set out at the next forecast.

The Government recognises the challenge these businesses face. The Chancellor announced the Winter Economy Plan on 24 September. This includes an extension to the temporary 5 per cent reduced rate of VAT on goods and services supplied by the tourism and hospitality sectors from 12 January to 31 March 2021. This alone provides continued support for the cash flow and viability of over 150,000 businesses and protection for 2.4 million jobs in the tourism and hospitality sectors. The Plan also provides further support to businesses and jobs over the coming months.


Written Question
Exports: VAT
Monday 28th September 2020

Asked by: Geoffrey Clifton-Brown (Conservative - The Cotswolds)

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential effect of the cessation of the VAT retail export scheme on the UK’s position as an international destination.

Answered by Jesse Norman

The Government has announced that the VAT Retail Export Scheme will not be extended to EU visitors, and will be withdrawn for all non-EU visitors, following the end of the transition period. However, retailers will continue to be able to offer VAT-free shopping to non-EU visitors who purchase items in store and have them sent direct to their overseas addresses and this will be available to EU visitors following the end of the transition period.

The final costing will be subject to scrutiny by the independent Office for Budget Responsibility and will be set out at the next forecast.

The Government recognises the challenge these businesses face. The Chancellor announced the Winter Economy Plan on 24 September. This includes an extension to the temporary 5 per cent reduced rate of VAT on goods and services supplied by the tourism and hospitality sectors from 12 January to 31 March 2021. This alone provides continued support for the cash flow and viability of over 150,000 businesses and protection for 2.4 million jobs in the tourism and hospitality sectors. The Plan also provides further support to businesses and jobs over the coming months.


Written Question
Exports: VAT
Monday 28th September 2020

Asked by: Geoffrey Clifton-Brown (Conservative - The Cotswolds)

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what the cost of the VAT retail export scheme is to the public purse; and what estimate he has made of the savings that will accrue to the public purse as a result of the cessation of that scheme.

Answered by Jesse Norman

The Government has announced that the VAT Retail Export Scheme will not be extended to EU visitors, and will be withdrawn for all non-EU visitors, following the end of the transition period. However, retailers will continue to be able to offer VAT-free shopping to non-EU visitors who purchase items in store and have them sent direct to their overseas addresses and this will be available to EU visitors following the end of the transition period.

The final costing will be subject to scrutiny by the independent Office for Budget Responsibility and will be set out at the next forecast.

The Government recognises the challenge these businesses face. The Chancellor announced the Winter Economy Plan on 24 September. This includes an extension to the temporary 5 per cent reduced rate of VAT on goods and services supplied by the tourism and hospitality sectors from 12 January to 31 March 2021. This alone provides continued support for the cash flow and viability of over 150,000 businesses and protection for 2.4 million jobs in the tourism and hospitality sectors. The Plan also provides further support to businesses and jobs over the coming months.


Written Question
Exports: VAT
Monday 28th September 2020

Asked by: Geoffrey Clifton-Brown (Conservative - The Cotswolds)

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the value of spending by international visitors on goods and services other than tax-free shopping in the UK; and what proportion of that spending is forecast to be retained in the UK after the VAT retail export scheme is withdrawn.

Answered by Jesse Norman

The Government has announced that the VAT Retail Export Scheme will not be extended to EU visitors, and will be withdrawn for all non-EU visitors, following the end of the transition period. However, retailers will continue to be able to offer VAT-free shopping to non-EU visitors who purchase items in store and have them sent direct to their overseas addresses and this will be available to EU visitors following the end of the transition period.

The final costing will be subject to scrutiny by the independent Office for Budget Responsibility and will be set out at the next forecast.

The Government recognises the challenge these businesses face. The Chancellor announced the Winter Economy Plan on 24 September. This includes an extension to the temporary 5 per cent reduced rate of VAT on goods and services supplied by the tourism and hospitality sectors from 12 January to 31 March 2021. This alone provides continued support for the cash flow and viability of over 150,000 businesses and protection for 2.4 million jobs in the tourism and hospitality sectors. The Plan also provides further support to businesses and jobs over the coming months.


Written Question
Rates and Rating
Tuesday 28th January 2020

Asked by: Geoffrey Clifton-Brown (Conservative - The Cotswolds)

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what formula is used by Valuation Office Agency assessors to determine rateable value.

Answered by Jesse Norman

The Rateable Value (RV) of any non-domestic property represents the annual rent a property would achieve if let on the open market at a valuation date which is set in law. For the current RVs, effective from 1 April 2017, the set valuation date is 1 April 2015.

The VOA uses a hierarchy of internationally recognised valuation approaches for assessing RV:

  • Rental comparison basis: analysis of rental evidence for similar properties to arrive at a rate for the property being valued. This is the most common method, used where a rental market exists and the nature of the property allows for comparison e.g. shops, offices and factories.

  • Receipts & expenditure basis: used in the absence of good quality rental information to identify the economic surplus notionally available for rent/RV. Typical properties valued using this method include hotels, caravan parks and race courses.

  • Contractor’s basis: used when there are no reliable rents and the motive for occupation is not for profit e.g. hospitals, schools and prisons. The value of the land and replacement building costs (adjusted for age and obsolescence) are annualised to provide a notional rent/RV. The annualised rate is known as the ‘decapitalisation’ rate and is specified in legislation at each revaluation.

Written Question
Exports: VAT
Wednesday 22nd January 2020

Asked by: Geoffrey Clifton-Brown (Conservative - The Cotswolds)

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how many organisations responded to HMRC's consultation entitled VAT Retail Export Scheme: Improvements, which closed on 6 September 2019; and when the outcome of that consultation will be published.

Answered by Jesse Norman

HM Revenue and Customs have been exploring the scope to modernise the VAT Retail Export Scheme and invited stakeholder feedback on emerging proposals. Twenty-three organisations responded to HMRC’s letter entitled VAT Retail Export Scheme: Improvements. HMRC have no plans to publish a summary of the responses.
Written Question
Exports: VAT
Wednesday 22nd January 2020

Asked by: Geoffrey Clifton-Brown (Conservative - The Cotswolds)

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps he is taking to ensure a level playing field on tax free shopping between UK and EU retailers in relation to UK consumers after the UK leaves the EU.

Answered by Jesse Norman

During the transitional period there will be no change to tax-free shopping arrangements in the UK. As with all aspects of the tax system, the Government will keep this under review.


Written Question
Exports: VAT
Wednesday 22nd January 2020

Asked by: Geoffrey Clifton-Brown (Conservative - The Cotswolds)

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what progress the Government has made in digitalising fully the Retail Export Scheme to reduce the administrative burden to travellers, as announced in the Autumn Statement 2016, and what the timetable is for that digitalisation to be delivered.

Answered by Jesse Norman

HMRC are continuing to build on the work undertaken following the announcement at Autumn Statement 2016 about plans to modernise the VAT Retail Export Scheme (RES).


Written Question
Exports: VAT
Wednesday 22nd January 2020

Asked by: Geoffrey Clifton-Brown (Conservative - The Cotswolds)

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether UK citizens will be entitled to shop tax free in EU member states at the end of the transition period on 31 January 2020.

Answered by Jesse Norman

During the transitional period which ends on 31 December 2020, there will be no change to the VAT Retail Export Scheme and so UK citizens will not be eligible to use this scheme. How the scheme will operate after the transitional period will depend on the outcome of negotiations on the UK’s future relationship with the EU.


Written Question
Foreign Investment in UK: Iran
Thursday 2nd February 2017

Asked by: Geoffrey Clifton-Brown (Conservative - The Cotswolds)

Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what steps his Department takes to help businesses to receive funds from Iran.

Answered by Simon Kirby

HM Treasury officials continue to work closely with UK banking industry bodies, as well as with UK-based banks, to understand the industry’s concerns and to work with them to identify approaches that will help facilitate payments from Iran.

Officials also continue to work closely with US colleagues to ensure that the US Office of Foreign Assets Control (OFAC) guidance and FAQs focus on issues that UK banks have raised and are as clear as possible. Officials continue to work with OFAC to feedback comments from industry.