Asked by: Harriet Cross (Conservative - Gordon and Buchan)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential merits of expanding the scope of the Loan Charge review to examine the wider contracting sector.
Answered by James Murray - Chief Secretary to the Treasury
The Government has commissioned an independent review of the Loan Charge. Ray McCann, a highly respected figure in the tax world, is leading the review. His name was suggested by one of the Loan Charge campaigners.
To ensure transparency, the terms of reference make it clear that Mr McCann will be supported by a team of officials who have not previously worked on this policy area and will be based outside of HM Treasury and HMRC. Information provided by HMT and HMRC to the review team and factual comments provided on draft reports will be published after the review has concluded.
The Government does not think it is right for people affected by the Loan Charge to have to wait years to bring this matter to a close and has therefore ensured that the review has a focused remit, allowing it to report by this summer. The Government will respond by Autumn Budget 2025.
Alongside the review, the Government will consult in 2025 on measures to tackle promoters of marketed tax avoidance and has already announced measures to tackle the significant tax avoidance and fraud in the umbrella company market.
Asked by: Harriet Cross (Conservative - Gordon and Buchan)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has considered including the role of promoters and intermediaries within the scope of the Loan Charge review.
Answered by James Murray - Chief Secretary to the Treasury
The Government has commissioned an independent review of the Loan Charge. Ray McCann, a highly respected figure in the tax world, is leading the review. His name was suggested by one of the Loan Charge campaigners.
To ensure transparency, the terms of reference make it clear that Mr McCann will be supported by a team of officials who have not previously worked on this policy area and will be based outside of HM Treasury and HMRC. Information provided by HMT and HMRC to the review team and factual comments provided on draft reports will be published after the review has concluded.
The Government does not think it is right for people affected by the Loan Charge to have to wait years to bring this matter to a close and has therefore ensured that the review has a focused remit, allowing it to report by this summer. The Government will respond by Autumn Budget 2025.
Alongside the review, the Government will consult in 2025 on measures to tackle promoters of marketed tax avoidance and has already announced measures to tackle the significant tax avoidance and fraud in the umbrella company market.
Asked by: Harriet Cross (Conservative - Gordon and Buchan)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has plans to consult affected stakeholders when establishing the terms of reference for the Loan Charge review.
Answered by James Murray - Chief Secretary to the Treasury
The Government has commissioned an independent review of the Loan Charge. Ray McCann, a highly respected figure in the tax world, is leading the review. His name was suggested by one of the Loan Charge campaigners.
To ensure transparency, the terms of reference make it clear that Mr McCann will be supported by a team of officials who have not previously worked on this policy area and will be based outside of HM Treasury and HMRC. Information provided by HMT and HMRC to the review team and factual comments provided on draft reports will be published after the review has concluded.
The Government does not think it is right for people affected by the Loan Charge to have to wait years to bring this matter to a close and has therefore ensured that the review has a focused remit, allowing it to report by this summer. The Government will respond by Autumn Budget 2025.
Alongside the review, the Government will consult in 2025 on measures to tackle promoters of marketed tax avoidance and has already announced measures to tackle the significant tax avoidance and fraud in the umbrella company market.
Asked by: Harriet Cross (Conservative - Gordon and Buchan)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to ensure an independent appointment process is in place for the Loan Charge review.
Answered by James Murray - Chief Secretary to the Treasury
The Government has commissioned an independent review of the Loan Charge. Ray McCann, a highly respected figure in the tax world, is leading the review. His name was suggested by one of the Loan Charge campaigners.
To ensure transparency, the terms of reference make it clear that Mr McCann will be supported by a team of officials who have not previously worked on this policy area and will be based outside of HM Treasury and HMRC. Information provided by HMT and HMRC to the review team and factual comments provided on draft reports will be published after the review has concluded.
The Government does not think it is right for people affected by the Loan Charge to have to wait years to bring this matter to a close and has therefore ensured that the review has a focused remit, allowing it to report by this summer. The Government will respond by Autumn Budget 2025.
Alongside the review, the Government will consult in 2025 on measures to tackle promoters of marketed tax avoidance and has already announced measures to tackle the significant tax avoidance and fraud in the umbrella company market.
Asked by: Harriet Cross (Conservative - Gordon and Buchan)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to ensure transparency in the conduct of the Loan Charge review.
Answered by James Murray - Chief Secretary to the Treasury
The Government has commissioned an independent review of the Loan Charge. Ray McCann, a highly respected figure in the tax world, is leading the review. His name was suggested by one of the Loan Charge campaigners.
To ensure transparency, the terms of reference make it clear that Mr McCann will be supported by a team of officials who have not previously worked on this policy area and will be based outside of HM Treasury and HMRC. Information provided by HMT and HMRC to the review team and factual comments provided on draft reports will be published after the review has concluded.
The Government does not think it is right for people affected by the Loan Charge to have to wait years to bring this matter to a close and has therefore ensured that the review has a focused remit, allowing it to report by this summer. The Government will respond by Autumn Budget 2025.
Alongside the review, the Government will consult in 2025 on measures to tackle promoters of marketed tax avoidance and has already announced measures to tackle the significant tax avoidance and fraud in the umbrella company market.
Asked by: Harriet Cross (Conservative - Gordon and Buchan)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 5 February 2025 to Question 27456 on Holiday Accommodation: Tax Allowances, if she will hold discussions with the Scottish Government on sharing data from the Short-term Let Licensing Scheme to (a) identify the number of Furnished Holiday Let properties in Scotland and (b) inform the implementation of changes to the Furnished Holiday Lettings tax regime in Scotland.
Answered by James Murray - Chief Secretary to the Treasury
The UK Government regularly engages with the Scottish Government, including on the implementation of policies. The Scottish Government regularly publishes statistics from its Short-term Licensing Scheme, which is publicly available. HMRC currently has no plans investigate Furnished Holiday Lettings in Scotland separately to those in the rest of the UK and the EEA.
Asked by: Harriet Cross (Conservative - Gordon and Buchan)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 5 February 2025 to Question 27456 on Holiday Accommodation: Tax Allowances, what estimate her Department has made of the total tax receipts from properties operating under the Furnished Holiday Lettings tax regime in 2023-24.
Answered by James Murray - Chief Secretary to the Treasury
HMRC does not hold data on the total tax receipts from Furnished Holiday Lettings. This is because income tax is calculated and charged based on an individual’s total taxable income, rather than a particular income stream.
Further information on Furnished Holiday Lettings, including the amount of income declared, is published by HMRC here:
Asked by: Harriet Cross (Conservative - Gordon and Buchan)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 10 February 2025 to Question 27711 on Holiday Accommodation: Taxation, what quantitative information her Department holds on (a) the number of properties converting between longer-term rentals and short-term holiday lets, (b) comparative tax advantages between short-term holiday lets and longer-term rentals and (c) property investment patterns that demonstrate potential market distortion.
Answered by James Murray - Chief Secretary to the Treasury
The Government will abolish the Furnished Holiday Lettings (FHL) tax regime from April 2025. The FHL tax regime has created a distortion that favours short-term holiday lets over longer-term rentals, by providing a tax incentive to invest in and provide the former over the latter. Abolishing it will equalise the tax treatment of FHL and non-FHL landlords' income and gains, making the tax system fairer.
Asked by: Harriet Cross (Conservative - Gordon and Buchan)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether business planning development work will be a qualifying activity to access the £1.8 billion allocated in the National Wealth Fund for the upgrade of port infrastructure and supply chain facilities.
Answered by James Murray - Chief Secretary to the Treasury
The National Wealth Fund has financial capacity totaling £27.8 billion, of which at least £5.8 billion will be committed over this Parliament to the five priority sectors that the Chancellor announced at the International Investment Summit, including ports.
There are no unique or additional criteria for accessing this funding as it will be deployed in line with the National Wealth Fund’s standard approach, an overview of which can be found here: https://www.nationalwealthfund.org.uk/how-we-invest-principles-and-approach.
This capital is available now - and will be targeted into investable projects that meet the National Wealth Fund’s investment criteria and mandate – driving growth, clean energy and creating the jobs of the future.
Anyone with a potentially investable project can contact the National Wealth Fund via its website.
Asked by: Harriet Cross (Conservative - Gordon and Buchan)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the criteria are for harbours and ports to access the £1.8 billion allocated in the National Wealth Fund for the upgrade of port infrastructure and supply chain facilities.
Answered by James Murray - Chief Secretary to the Treasury
The National Wealth Fund has financial capacity totaling £27.8 billion, of which at least £5.8 billion will be committed over this Parliament to the five priority sectors that the Chancellor announced at the International Investment Summit, including ports.
There are no unique or additional criteria for accessing this funding as it will be deployed in line with the National Wealth Fund’s standard approach, an overview of which can be found here: https://www.nationalwealthfund.org.uk/how-we-invest-principles-and-approach.
This capital is available now - and will be targeted into investable projects that meet the National Wealth Fund’s investment criteria and mandate – driving growth, clean energy and creating the jobs of the future.
Anyone with a potentially investable project can contact the National Wealth Fund via its website.