Asked by: Madeleine Moon (Labour - Bridgend)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will undertake a review of the tax exemption limit for cash redundancy payments; and if he will make a statement.
Answered by Jesse Norman
The Government confirmed in Finance (No. 2) Act 2017 that the first £30,000 of all termination payments remain exempt from income tax.
The UK has one of the most generous tax exemptions for termination payments in the OECD, and around 80% of the termination awards made each year will remain completely free from income tax. The £30,000 threshold also exceeds the maximum statutory redundancy payment of £15,750.
The Government has no plans to change the termination payments tax exempt threshold.
Asked by: Madeleine Moon (Labour - Bridgend)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make it his policy to issue a waiver for the tax due on redundancy payments to be received by Ford Bridgend workers.
Answered by Jesse Norman
The Government confirmed in Finance (No. 2) Act 2017 that the first £30,000 of all termination payments remain exempt from income tax. The UK has one of the most generous tax exemptions for termination payments in the OECD, and around 80% of the termination awards made each year will remain completely free from income tax.
HM Revenue and Customs does not have the data available to make an estimate on the cost of reducing tax from redundancy payments for Ford, Bridgend.
Asked by: Madeleine Moon (Labour - Bridgend)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the value of reducing tax deductions from redundancy payments to workers at Ford Bridgend; and if he will make a statement.
Answered by Jesse Norman
The Government confirmed in Finance (No. 2) Act 2017 that the first £30,000 of all termination payments remain exempt from income tax. The UK has one of the most generous tax exemptions for termination payments in the OECD, and around 80% of the termination awards made each year will remain completely free from income tax.
HM Revenue and Customs does not have the data available to make an estimate on the cost of reducing tax from redundancy payments for Ford, Bridgend.
Asked by: Madeleine Moon (Labour - Bridgend)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 10 April 2019 to Question 240486 on London Capital and Finance, when he plans to publish the terms of the investigation; and if he will make a statement.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Further details of this investigation, including its terms, will be communicated in due course.
Asked by: Madeleine Moon (Labour - Bridgend)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of establishing a compensation fund for investors who lost funds as a result of the collapse of London Capital and Finance; and if he will make a statement.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The administrators for London Capital & Finance (LCF) are currently estimating recoveries for investors affected by LCF’s failure.
LCF’s investors are unlikely to have access to the Financial Services Compensation Scheme (FSCS). However, this would be for the FSCS to determine as an independent body from both HM Treasury and the Financial Conduct Authority.
The FSCS is working closely with the administrators to understand more about LCF’s activities. If there are circumstances that give rise to potentially valid claims, the FSCS will begin to accept claims against LCF and communicate this on their website.
Asked by: Madeleine Moon (Labour - Bridgend)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when his Department plans to respond to the letter from the hon. Member for Bridgend of 13 November 2018, reference MM/JH/12/11/2018.
Answered by Mel Stride - Secretary of State for Work and Pensions
HM Revenue and Customs are currently investigating the issues raised in your original correspondence as they relate to operational tax matters. They aim to get back to you as soon as possible.
Asked by: Madeleine Moon (Labour - Bridgend)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to ensure that the Financial Conduct Authority has the necessary resources to enforce its rules on pay day lenders carrying out affordability checks on potential customers.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government has fundamentally reformed regulation of the consumer credit market, transferring regulatory responsibility to the Financial Conduct Authority (FCA) on 1 April 2014.
The legislative framework provides for the FCA to be operationally independent from Government. The FCA is funded via a levy on financial services firms, which is set by the FCA to cover its funding requirement each year following consultation. As such, resourcing decisions are a matter for the FCA.