Asked by: Lee Dillon (Liberal Democrat - Newbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to provide increased incentives for non-domiciled individuals to remain in the UK.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
On 6 April 2025 the outdated concept of domicile was removed from the tax system and replaced with a new residence-based regime, including a four-year foreign income and gains regime. The new regime includes the temporary repatriation facility (TRF) for individuals who have previously used the remittance basis to designate and pay tax at a reduced rate on foreign income and gains that arose prior April 2025.
The reforms to the tax treatment of non-domiciled individuals have been specifically designed to make the UK competitive, with a modern, simple tax regime that is also fair.
At Budget 2025, the government announced that it is introducing a cap on Inheritance Tax charges on trusts settled by former non-doms prior to Autumn Budget 2024. This reflects the significant amount of tax impacted individuals are expected to pay by remaining in the UK, as well as their wider economic contribution. This cap will apply to trust charges arising from April 2025.
At Budget 2025, the government also published the Finance Bill, which includes technical amendments to the legislation for the TRF. These include amendments to remove specific barriers to using the facility.
Asked by: Lee Dillon (Liberal Democrat - Newbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has plans to amend the temporary repatriation facility to encourage greater take-up by non-domiciled individuals.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
On 6 April 2025 the outdated concept of domicile was removed from the tax system and replaced with a new residence-based regime, including a four-year foreign income and gains regime. The new regime includes the temporary repatriation facility (TRF) for individuals who have previously used the remittance basis to designate and pay tax at a reduced rate on foreign income and gains that arose prior April 2025.
The reforms to the tax treatment of non-domiciled individuals have been specifically designed to make the UK competitive, with a modern, simple tax regime that is also fair.
At Budget 2025, the government announced that it is introducing a cap on Inheritance Tax charges on trusts settled by former non-doms prior to Autumn Budget 2024. This reflects the significant amount of tax impacted individuals are expected to pay by remaining in the UK, as well as their wider economic contribution. This cap will apply to trust charges arising from April 2025.
At Budget 2025, the government also published the Finance Bill, which includes technical amendments to the legislation for the TRF. These include amendments to remove specific barriers to using the facility.
Asked by: Lee Dillon (Liberal Democrat - Newbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps have been taken to help ensure that employers are aware of National Insurance relief available when hiring apprentices under the age of 25.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
HMRC maintains comprehensive GOV.UK guidance to help employers understand the Class 1 NICs relief for apprentices under the age of 25, which has been in place since 2016. It can be found here: Paying employer National Insurance contributions for apprentices under 25 - GOV.UK.
Beyond the NICs relief, the government is committed to supporting the employers of young Apprentices and at Budget 2025 announced a change to fully fund SME apprenticeships for eligible people under 25.
Asked by: Lee Dillon (Liberal Democrat - Newbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the Council of Nations and Regions’ programme of work will consider fiscal devolution.
Answered by James Murray - Chief Secretary to the Treasury
The United Kingdom Government regularly considers how fiscal devolution arrangements are working in practice, taking into account the views of a range of stakeholders.
Asked by: Lee Dillon (Liberal Democrat - Newbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether it is her policy to introduce longer-term fiscal devolution.
Answered by James Murray - Chief Secretary to the Treasury
The United Kingdom Government regularly considers how fiscal devolution arrangements are working in practice, taking into account the views of a range of stakeholders.
Asked by: Lee Dillon (Liberal Democrat - Newbury)
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 list of energy-saving materials eligible for VAT relief beyond heat pumps, including heat batteries.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Installations of qualifying energy-saving materials (ESMs) in residential accommodation and buildings used solely for a charitable purpose benefit from a temporary VAT zero rate until March 2027, after which they will revert to the reduced rate of VAT at five per cent. The list of qualifying ESMs, which includes but is not limited to heat pumps, can be found here: https://www.gov.uk/guidance/vat-on-energy-saving-materials-and-heating-equipment-notice-7086.
The Government assesses whether to add ESMs to this relief by evaluating them against the following tests: the primary purpose of the technology must be to improve energy efficiency and reduce carbon emissions; relieving the technology of VAT must be a cost effective lever for encouraging installations; and it must be practical for business to operate and for HMRC to administer.
Asked by: Lee Dillon (Liberal Democrat - Newbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department plans to review inheritance tax reliefs for agricultural property.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government believes its reforms to agricultural property relief and business property relief from 6 April 2026 get the balance right between supporting farms and businesses, fixing the public finances, and funding public services. The reforms reduce the inheritance tax advantages available to owners of agricultural and business assets, but still mean those assets will be taxed at a much lower effective rate than most other assets. Despite a tough fiscal context, the Government will maintain very significant levels of relief from inheritance tax beyond what is available to others and compared to the position before 1992. Where inheritance tax is due, those liable for a charge can pay any liability on the relevant assets over 10 annual instalments, interest-free.
The Government will invest more than £2.7 billion a year in sustainable farming and nature recovery from 2026-27 until 2028-29. This includes the largest financial investment into nature-friendly farming ever.
Asked by: Lee Dillon (Liberal Democrat - Newbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential merits of extending Orchestra Tax Relief to (a) vocal performance groups and (b) choirs.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government supports the creative industries, including orchestras, through funding and through the tax system. To qualify for Orchestra Tax Relief, a concert must be performed by a group of at least 12 instrumentalists. The voice is not considered to be an instrument for these purposes. However, orchestra concerts with a vocal element are eligible for the relief providing that the orchestra also contains at least 12 instrumentalists, not including the voice, and the instrumentalists are the primary focus.
Vocal performance groups and choirs do not qualify for Orchestra Tax Relief since the scheme aims to support the cultural and distinct economic activity associated with orchestral concerts. We do of course recognise the benefits choirs and vocal performance groups offer to those who participate and who enjoy their performances.
When considering new tax reliefs, the Government takes into account a wide range of factors including costs, complexity, and fairness.
The Chancellor makes announcements on tax at fiscal events in the context of the overall public finances.
Asked by: Lee Dillon (Liberal Democrat - Newbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of (a) VAT and (b) business rates on the hospitality sector.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
In April 2026, the Government will introduce permanently lower business rates multipliers for retail, hospitality, and leisure properties with ratable values below £500,000. This permanent tax cut will ensure that eligible hospitality businesses, including pubs, benefit from much-needed certainty and support.
Ahead of the new multipliers being introduced, the Government prevented RHL business rates relief from ending in April 2025, extending it for one year at 40 per cent up to a cash cap of £110,000 per business.
Business rates are a vital source of Local Government funding and support critical local services, including children's and adult social care. As such, the Government has no plans to abolish business rates for pubs.
VAT is a broad-based tax on consumption that applies to most goods and services.
Asked by: Lee Dillon (Liberal Democrat - Newbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of changes to the business rates system from 1 April 2026 on businesses in the horseracing industry.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government is creating a fairer business rates system that protects the high street, supports investment, and is fit for the 21st century.
To deliver our manifesto pledge, from 2026/27, the Government intends to introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties, including those on the high street, with rateable values below £500,000. This permanent tax cut will ensure that they benefit from much-needed certainty and support.
This tax cut must be sustainably funded, and so we intend to introduce a higher rate on the most valuable properties in 2026/27 - those with Rateable Values (RVs) of £500,000 and above. These represent less than one per cent of all properties, but cover the majority of large distribution warehouses, including those used by online giants.
The final design, including the rates, for the new business rates multipliers will be announced at Budget 2025, so that the Government can factor the revaluation outcomes and broader economic and fiscal context into decision-making. When the new multipliers are set, HM Treasury intends to publish analysis of the effects of the new multiplier arrangements.
Ahead of these changes being made, we recognise that businesses will need support in 2025/26. As such, the Government has prevented the current RHL relief from ending in April 2025, extending it for one year at 40 per cent up to a cash cap of £110,000 per business, and the Government has frozen the small business multiplier.