Asked by: Kenny MacAskill (Alba Party - East Lothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has received recent requests from the Scottish Government for the devolution of powers to allow for the introduction of a wealth tax in Scotland.
Answered by John Glen
The Treasury has not received any recent requests from the Scottish Government in relation to further tax devolution. The UK Government remains committed to the tax devolution agreed by the multi-party Smith Commission.
Asked by: Kenny MacAskill (Alba Party - East Lothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent requests have been received from the Scottish Government for the devolution of Capital Gains Tax.
Answered by John Glen
The Treasury has not received any recent requests from the Scottish Government in relation to further tax devolution. The UK Government remains committed to the tax devolution agreed by the multi-party Smith Commission.
Asked by: Kenny MacAskill (Alba Party - East Lothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will bring forward legislative proposals to give the Scottish Parliament powers to impose a levy on the profits made by supermarkets on the minimum unit price for low-cost high-strength alcohol.
Answered by James Cartlidge - Shadow Secretary of State for Defence
As part of our alcohol duty review, the Government has confirmed that the UK will move to a taxation system which taxes all alcohol products according to strength to meet its public health objectives, whilst ensuring it does not increase administrative burdens on businesses. The reforms ensure that stronger products, which are associated with higher levels of harm, pay proportionately more duty.
We keep the alcohol duty rates under review through the yearly Budget process and aim to balance public health objectives with support for businesses.
Asked by: Kenny MacAskill (Alba Party - East Lothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make it mandatory for supermarkets to provide and publish data on alcohol sales.
Answered by James Cartlidge - Shadow Secretary of State for Defence
As part of our alcohol duty review, the Government has confirmed that the UK will move to a taxation system which taxes all alcohol products according to strength to meet its public health objectives, whilst ensuring it does not increase administrative burdens on businesses. The reforms ensure that stronger products, which are associated with higher levels of harm, pay proportionately more duty.
We keep the alcohol duty rates under review through the yearly Budget process and aim to balance public health objectives with support for businesses.
Asked by: Kenny MacAskill (Alba Party - East Lothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an estimate of what the tax revenue will be from VAT levied on domestic heating bills in the 2022-23 financial year.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
HMRC publishes estimates of the Exchequer cost of tax reliefs, see https://www.gov.uk/government/statistics/main-tax-expenditures-and-structural-reliefs. The estimated cost of non-structural tax reliefs (December 2021) VAT table shows that the cost estimate for the Reduced Rate of VAT on supplies of domestic fuel and power in 2021-22 was £5,200 million. This represents the cost of the 5 per cent Reduced Rate compared to the Standard Rate of 20 per cent, a relief of 15 per cent. The revenue received at the Reduced Rate may be estimated at 5/15ths of the figure of £5,200 million, or £1,700m (rounded).
This estimate does not reflect most of the recent rise in domestic energy prices. The next update of HMRC’s tax relief cost estimates is scheduled for publication on 12 January 2023, and will provide estimates for the 2022-23 financial year.
The rise in household energy costs in 2022-23 has reduced overall VAT receipts. This is because higher spending on energy bills, which are taxed at a lower rate of 5 per cent, shifts consumption away from other goods and services that are on average taxed at higher VAT rates. For further explanation, see paragraph 3.38 of the Office for Budget Responsibility’s March 2022 Economic and Fiscal Review: Economic and fiscal outlook - March 2022 (obr.uk)
Asked by: Kenny MacAskill (Alba Party - East Lothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has ever purchased (a) bitcoin, (b) other cryptocurrencies and (c) other digital assets.
Answered by Andrew Griffith - Shadow Secretary of State for Business and Trade
HM Treasury can disclose it has not bought or held any digital assets in the UK government official reserves. The gross official reserves, held in the Exchange Equalisation Account (EEA), are comprised of foreign currency assets (cash, bonds, and notes), gold assets and net positions of International Monetary Fund (IMF) Special Drawing Rights (SDR).Under the EEA Act 1979, the EEA may invest in cash or securities denominated in the foreign currencies represented in the IMF SDR basket.
Asked by: Kenny MacAskill (Alba Party - East Lothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has had recent discussions with relevant stakeholders on the potential merits of establishing a cryptocurrency managed by the Government.
Answered by Andrew Griffith - Shadow Secretary of State for Business and Trade
The UK, like many other countries globally, is actively exploring the potential role of a Central Bank Digital Currency (CBDC). The Government and the Bank of England have not yet made a decision on whether to introduce a CBDC in the UK. The Government is engaging widely with a diverse range of stakeholders on the benefits, risks and practicalities of doing so. The Government has committed to publishing a joint consultation from HM Treasury and the Bank of England setting out their assessment of the case for a UK CBDC.
In April 2021 the Government announced a new joint HMT and Bank of England CBDC Taskforce to coordinate the exploration of a potential UK CBDC. This Taskforce ensures a strategic approach to CBDC work underpinned by effective coordination between UK authorities – including Government departments, financial regulators, HMT and the Bank of England.
In April 2021 the Treasury also announced a new stakeholder Engagement Forum and Technology Forum. These groups are engaging with a broad range of stakeholders and technology experts on various issues relating to the exploration of a possible UK CBDC, including on risks, benefits, and technical design. The Bank received diverse applications from across industry for membership of both of these groups, and final membership is public. The minutes have been published on the Bank of England Website.
Asked by: Kenny MacAskill (Alba Party - East Lothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of recent tax changes on the income charities receive through Gift Aid.
Answered by Felicity Buchan
On 23 September, the Government announced that the reduction to the basic rate of income tax would be brought forward by one year, and alongside this announced a transition period for Gift Aid to support the charities sector. Worth over £300m, this will maintain the rate of Gift Aid at 20% for four years, until April 2027, giving almost 70,000 charities time to transition to the lower basic rate of tax.