Asked by: Geoffrey Cox (Conservative - Torridge and West Devon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the report entitled Property income review: simplifying income tax for residential landlords, published by the Office for Tax Simplification on 25 October 2022, if he will take steps to introduce legislative proposals for a brightline test to clarify when property letting activities subject to income tax would qualify as a trade.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
I refer my hon. Friend to the answer I gave on 21 March 2024 to question UIN 18911.
Asked by: Geoffrey Cox (Conservative - Torridge and West Devon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will publish guidance on the tax regime for furnished holiday lets after April 2025.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
The Government will publish draft legislation, explanatory notes, and a tax information and impacts note in due course. These will set out how the announced changes will apply in practice.
Asked by: Geoffrey Cox (Conservative - Torridge and West Devon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps the Government is taking to ensure that deprived rural and coastal communities receive a fair allocation of per capita spending on public infrastructure.
Answered by Kemi Badenoch - President of the Board of Trade
The Government’s levelling up agenda aims to spread opportunity and investment across every region and nation of the UK—including in rural and coastal communities. We will deliver this pledge by boosting jobs, wages and prospects for all communities. At Budget the Government also announced policies that will benefit those communities most in need, including the first round of the £4.8bn Levelling Up Fund—designed to drive regeneration in places that have received less Government investment in recent years. On top of this, the next £5.2 billion Flood and Coastal Defence programme kickstarts in this month, and we are allocating £1.2bn over four years to support the rollout of gigabit-capable broadband in hard-to-reach areas—the start of our £5bn UK Gigabit programme.
Asked by: Geoffrey Cox (Conservative - Torridge and West Devon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps the Government is taking to support small business owners that receive their income primarily through dividend payments rather than salary.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
HMRC are not able to distinguish between dividends derived from an individual’s own company and dividends from other sources, so do not have a clear mechanism through which to support dividend income from an individual’s own company, without also supporting dividend income from other investments. Dividends are taxed at a low rate and are paid in respect of the individual’s role as a shareholder in their own business. It would not be right therefore for the Government to reimburse shareholders’ dividend income.
However, individuals paying themselves a salary through a PAYE scheme, including salaried company directors, are able to apply for the Coronavirus Job Retention Scheme (CJRS), subject to their abiding by the requirements of the scheme. Those who pay tax on their trading profits through Income Tax Self-Assessment may instead be eligible for the Self-Employed Income Support Scheme (SEISS). The SEISS will provide grants to those who are self-employed, or members of partnerships, worth 80% of their trading profits/partnership trading profits, up to a maximum of £2,500 per month. SEISS is available to those who generate majority of their income from self-employment and who earn less than £50k.
Small business owners may also benefit from a range of other support measures including:
The Business Support website provides further information about how businesses can access the support that has been made available, who is eligible, when the schemes open and how to apply - https://www.businesssupport.gov.uk/coronavirus-business-support.
Asked by: Geoffrey Cox (Conservative - Torridge and West Devon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of extending further support to the hospitality, leisure, and tourism industries if the current suspension of commercial activity continues beyond June 2020.
Answered by Kemi Badenoch - President of the Board of Trade
During this difficult time the Treasury recognises the extreme disruption the necessary actions to combat Covid-19 are having on businesses, including important industries such as hospitality, leisure and tourism.
That is why the Government has announced unprecedented support for individuals and businesses to protect against the current economic emergency. This includes the Coronavirus Job Retention Scheme, a business rates holiday, grants to smaller businesses, and a package of government-backed and guaranteed loans through the Coronavirus Corporate Financing Facility (CCFF), the Coronavirus Business Interruption Loan Scheme (CBILS) and the Coronavirus Large Business Interruption Loan Scheme (CLBILS). Together these schemes ensure almost all viable UK businesses can apply for a government backed loan.
The government will not be able to protect every single job or save every single business, but these measures will support millions of families, businesses and self-employed people to get through this and emerge on the other side both stronger and more united.
Asked by: Geoffrey Cox (Conservative - Torridge and West Devon)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, if he will make an assessment of the potential merits of a reduction in VAT for small businesses in the tourism sector.
Answered by David Gauke
The Government has reviewed the economic case for a reduction in VAT for the hospitality sector.
In our view there is insufficient evidence to justify a reduction in VAT.
Reducing VAT on all tourism related activities would have a potential cost in excess of £10 billion in the first year alone.
Asked by: Geoffrey Cox (Conservative - Torridge and West Devon)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what recent representations his Department has received on the level of VAT applicable to small tourist businesses.
Answered by David Gauke
The Government has received a number of representations from the ‘Cut Tourism VAT’ campaign.
I refer the Hon gentleman to my comments during the recent Westminster Hall debate on 17 March 2015.
Asked by: Geoffrey Cox (Conservative - Torridge and West Devon)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what fiscal steps he has taken to support tourism in the South West.
Answered by Danny Alexander
The government has announced a number of policy measures to support tourism in the South West region including;
On 26 January during a visit to Plymouth the Chancellor of the Exchequer announced a £10 million package for the South West from round 3 of the Coastal Communities Fund to support regional growth including the tourism sector. He also announced a £2 million challenge fund as part of the GREAT Britain campaign to promote regions and cities including in the South West; and £100,000 government funding to support more Small and Medium sized Enterprises to attend a trade fair to promote South West tourism destinations to key international markets.
On 20 February in Bristol the Chief Secretary to the Treasury announced £5 million funding towards the transformation of Colston Hall in Bristol into the only international standard concert hall in South West.
On 5 March the Deputy Prime Minister announced £5 million funding to boost tourism in the South West by creating a joined-up strategy for marketing the region.