Asked by: Julian Lewis (Conservative - New Forest East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of ending the stamp duty penalty for operators of integrated retirement communities modernising the terms of leases of homes units before they are resold to new residents.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
The Government has been made aware of a proposal for a Stamp Duty Land Tax relief for operators of integrated retirement communities. All taxes are kept under review.Asked by: Julian Lewis (Conservative - New Forest East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, which Government Departments will contribute towards the recently announced £2.5 billion assistance package for Ukraine; how much each Department will (a) provide towards that total, (b) receive in extra sums granted by the Treasury to offset that contribution and (c) donate in terms of resources towards that total without reimbursement from the Treasury.
Answered by Laura Trott - Chief Secretary to the Treasury
This is new funding. No department is being asked to contribute to this package.
Asked by: Julian Lewis (Conservative - New Forest East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make it his policy to assist mortgage-holders on variable rates, whose mortgages have increased significantly since the September 2022 Growth Plan by requiring lenders to (a) extend the repayment term and (b) reverse such increases made following the announcement of that Plan.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The pricing and availability of loans is a commercial decision for lenders in which the Government does not intervene. However, HM Treasury is regularly in contact with mortgage lenders on all aspects of their mortgage business to understand their position and current lending conditions, including most recently at a roundtable hosted by the Chancellor. At this roundtable, the Chancellor made clear that he expects every lender to live up to their responsibilities and support any mortgage borrowers who are finding it tough right now.
It is important to note that around 75% of residential mortgage borrowers are on fixed-rate deals and therefore shielded from interest rate rises in the near term. If mortgage borrowers do fall into financial difficulty, FCA guidance requires firms to provide support through tailored forbearance options, which can include a term extension if that is deemed to be within the borrower’s best interests.
The Government has also taken a number of measures aimed at helping people to avoid repossession, including offering Support for Mortgage Interest (SMI) loans for those in receipt of an income-related benefit. It was announced at Autumn Statement that, from spring 2023, the Government will allow those on Universal Credit to apply for an SMI loan to help with interest repayments after three months, instead of nine. We will also abolish the zero earnings rule to allow claimants to continue receiving support while in work and on Universal Credit. In addition, the Government offers mortgage borrowers protection in the courts through the Pre-Action Protocol, which makes clear that repossession must always be the last resort for lenders.
More broadly, the Government has taken decisive action to support households across the UK through the cost-of-living challenges ahead, whilst remaining fiscally responsible. In addition to the £37 billion of support for the cost of living already announced for 2022-23, the Government has announced further support for next year designed to target the most vulnerable households. This cost-of-living support is worth £26 billion in 2023-24, in addition to benefits uprating, which is worth £11 billion to working age households and people with disabilities. The Government is also continuing to provide support to all households through the Energy Price Guarantee, which will save the average UK household £500 in 2023-24.
Asked by: Julian Lewis (Conservative - New Forest East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of the Autumn Statement 2022 on the sustainability of existing mortgages; and if he will make a statement.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
As the Chancellor has said, sound money and a stable economy are the best ways to deliver lower mortgage rates, more jobs and long-term growth. Economic stability relies on fiscal sustainability – and the Autumn Statement puts the public finances onto a sustainable footing, with debt as a proportion of the economy falling by the end of the forecast period.
Indeed, the Office for Budget Responsibility (OBR) has said that without the measures announced at Autumn Statement, underlying debt would be rising by £108bn in 2027-28. The OBR has also noted that the net effect of the Government’s package supports the economy in the aggregate, by “reducing the fall in output when the economy is in recession and unemployment rising”.
To support mortgage borrowers with rising interest rates, it was announced at Autumn Statement that, from spring 2023, the Government will allow those on Universal Credit to apply for a Support for mortgage Interest (SMI) loan to help with interest repayments after three months, instead of nine. We will also abolish the zero earnings rule to allow claimants to continue receiving support while in work and on Universal Credit.
In addition to SMI, the Government also provides protection in the courts through the Pre-Action Protocol, which makes it clear that repossession must always be the last resort for lenders. It is also worth noting that, if mortgage holders are struggling to keep up with their payments, FCA guidance requires firms to offer tailored support. This could include a range of measures depending on individual circumstances.
Asked by: Julian Lewis (Conservative - New Forest East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what fiscal steps he is taking to help support the food and drink supply chain.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The government recognises the efforts of operators in the food and drink sector in maintaining supplies during the pandemic and the challenges that continue to be felt due to global supply chain issues.
The government closely monitors these issues and, where necessary, takes appropriate fiscal and non-fiscal steps to alleviate temporary pressures. In November the government announced support for the pig industry through the Private Storage Aid scheme, additional support for pork processing, and a pork levy holiday.
The government has also taken steps through the visa system to help address temporary labour shortages among pork butchers and poultry workers, building on the successful Seasonal Agricultural Workers scheme.
Over the longer term, the government will continue to support UK agriculture following EU Exit. The 2021 Spending Review fulfilled the commitment to maintain farm budgets in England, Scotland, Wales, and Northern Ireland throughout this parliament, worth a total of £3.7 billion a year.
Asked by: Julian Lewis (Conservative - New Forest East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will list the grounds on which HMRC determines which Film Partnership investors were (a) genuine and (b) engaged in exploitation of tax reliefs for the purpose of tax avoidance; what consideration was given to the latter possibility when Film relief was introduced in 1997; what protection is currently offered to people who invested in Film Partnership schemes (i) primarily to support the UK film industry and (ii) in good faith after obtaining advice from qualified financial experts; what the typical time-lapse has been between an individual having made an investment in a Film Partnership scheme and the commencement of a tax recovery initiative by HMRC in respect of that investment; and if he will make it his policy to discriminate between those investors who can be proved to have abused the Film Partnership tax relief concession and those who sought to use it for its ostensible purpose.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
In 1997, the Government introduced a form of relief for investment in films, which has since been repealed. Whilst many partnerships sought to invest in British films and take advantage of the relief afforded, there were also many which sought to use the relief in ways not intended, often trying to obtain tax relief well in excess of the amount that they put in.
Significant legislative action was taken over a number of years to try and prevent these various forms of abuse, and HMRC continues to actively investigate and counter those schemes where it has concerns. As reliefs are typically generated via partnership structures, HMRC enquiries are made into the tax returns of the partnerships. Enquiries are opened into partnership returns within 12 months of them being submitted, as permitted by legislation, and the outcome of these enquiries is determined on the facts of each individual case.
HMRC continues to settle and litigate these complicated schemes which have typically taken years to unpick and prepare for litigation. HMRC settles disputes with taxpayers in line with its published Litigation and Settlement Strategy.
Asked by: Julian Lewis (Conservative - New Forest East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the potential effect of a cliff-edge ending of the stamp duty holiday on property sales and purchases that are currently underway and which fail to complete before the chosen deadline; and if he will make it his policy to reintroduce that duty in graduated phases when the stamp duty holiday ends.
Answered by Jesse Norman
The temporary increase in the Stamp Duty Land Tax nil rate band was designed to create immediate momentum within the property market, where property transactions fell by as much as 50 per cent during the COVID-19 lockdown in March.
The Government is monitoring delays in the buying process closely. As the relief was designed to provide an immediate stimulus to the property market, the Government does not plan to extend this relief.
Asked by: Julian Lewis (Conservative - New Forest East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the (a) effectiveness of the Scottish Pivotal Enterprise Resilience Hardship Fund in safeguarding food and drink wholesale businesses from collapse and (b) potential merits of a scheme based on that model in other parts of the UK.
Answered by Kemi Badenoch - President of the Board of Trade
Throughout the Covid-19 crisis, the Government has protected people’s jobs and livelihoods while also supporting businesses and public services across the UK. Food and drink wholesalers have been eligible for a number of economic support schemes, including:
Wholesalers in England may also receive further support with their fixed costs from local authorities through the £1.6 billion in funding made available for discretionary Additional Restrictions Grants to support local businesses.
Businesses may also be eligible for other elements of the Government’s support package including government-backed loans, tax deferrals, Business Rate reliefs, and general and sector-specific grants. The Government urges businesses to visit the online Coronavirus Business Support Finder Tool for tailored information on how to access support available to them.
To give the Scottish Government the certainty to plan and deliver their Covid-19 response, we have provided them with an upfront guarantee that they will receive at least £8.6bn in additional funding this year on top of their Spring Budget funding. It is for the Scottish Government to determine how to use this funding.
Asked by: Julian Lewis (Conservative - New Forest East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the (a) effectiveness of the Scottish Wholesale Food and Drink Resilience Fund in safeguarding food and drink wholesale businesses from collapse and (b) potential merits of a scheme based on that model in other parts of the UK.
Answered by Kemi Badenoch - President of the Board of Trade
Throughout the Covid-19 crisis, the Government has protected people’s jobs and livelihoods while also supporting businesses and public services across the UK. Food and drink wholesalers have been eligible for a number of economic support schemes, including:
Wholesalers in England may also receive further support with their fixed costs from local authorities through the £1.6 billion in funding made available for discretionary Additional Restrictions Grants to support local businesses.
Businesses may also be eligible for other elements of the Government’s support package including government-backed loans, tax deferrals, Business Rate reliefs, and general and sector-specific grants. The Government urges businesses to visit the online Coronavirus Business Support Finder Tool for tailored information on how to access support available to them.
To give the Scottish Government the certainty to plan and deliver their Covid-19 response, we have provided them with an upfront guarantee that they will receive at least £8.6bn in additional funding this year on top of their Spring Budget funding. It is for the Scottish Government to determine how to use this funding.
Asked by: Julian Lewis (Conservative - New Forest East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many people have been actively pursued for payment of the Loan Charge (a) in each lockdown period and (b) overall since the beginning of the covid-19 outbreak; what estimate he has made of the numbers of (i) bankruptcies and (ii) suicides associated with Loan Charge payment demands; what steps HMRC has taken against companies which advised their clients to use disguised remuneration schemes; and what data has been collected on contractors who worked for HMRC while utilising disguised remuneration schemes.
Answered by Jesse Norman
Taxpayers had until 30 September 2020 to file and pay the Loan Charge or agree a Time to Pay arrangement. Since then, HMRC have contacted taxpayers with a Loan Charge liability to establish what, if any, support they need to pay the amount due. HMRC’s helpline and the dedicated Loan Charge helpline are available to support taxpayers in managing their debt and agreeing arrangements to pay their liability, including referral for independent debt advice and explaining guaranteed Time to Pay criteria.
HMRC do not want to make anyone bankrupt, and insolvency is only ever considered as a last resort. HMRC will work with individuals to reach sustainable and manageable payment plans wherever possible. In line with current practice, HMRC will pause recovery action where a taxpayer has no ability to pay, until there is a significant change of circumstances. HMRC are not always the only creditor and some individuals may choose to enter insolvency themselves based on their overall financial position. HMRC have not made an estimate of the number of people who may become bankrupt and have a Loan Charge liability.
HMRC records show that in six cases taxpayers have very sadly taken their lives and have also been identified as having used a disguised remuneration scheme. On each occasion HMRC referred the case to the Independent Office for Police Conduct (IOPC), and HMRC undertook an internal investigation. Four investigations have been concluded and in all no staff misconduct was identified which might warrant disciplinary action.
In March 2020, HMRC published on GOV.UK their strategy for tackling promoters of tax avoidance schemes, including those who promote disguised remuneration schemes. The strategy sets out HMRC’s work to date and outlines how HMRC will continue to take robust action against promoters of tax avoidance.
HMRC collect certain details of all the contractors they engage as contingent labour, including names, National Insurance numbers and engagement periods. As with other taxpayers, HMRC also hold information returned through PAYE. HMRC maintain a compliance database with information on both individuals and employers who are associated with known avoidance schemes. HMRC do not engage in, or enter into, disguised remuneration schemes. It is possible for a contractor providing services to HMRC to use a disguised remuneration scheme without HMRC’s knowledge or participation.