Asked by: Michael Fallon (Conservative - Sevenoaks)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential effect on SMEs in Kent of making customs declarations for the first time in the event that the UK leaves the EU without a deal.
Answered by Mel Stride - Shadow Chancellor of the Exchequer
The Government remains confident of agreeing a mutually advantageous deal with the EU. However, we understand that if in the unlikely event that the UK leaves without a deal, customs declarations will become a new obligation for UK-EU trade which could affect many small and medium sized businesses.
HMRC continues to engage with businesses and their representative trade bodies and undertakes further specific engagement to understand how they will be affected by these new obligations. HMRC has written to 145,000 traders over the VAT threshold who currently only trade with the EU to help them plan for a no deal scenario. Alongside this, HMT and HMRC are supporting the intermediaries sector to expand ahead of March 19, so that they can provide services to SMEs.
Asked by: Michael Fallon (Conservative - Sevenoaks)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what estimate he has made of the proportion of the UK commemorative coin market held by the Royal Mint.
Answered by Robert Jenrick
Her Majesty’s Treasury have not estimated the size or value of The Royal Mint’s share of the UK commemorative coin market.
Asked by: Michael Fallon (Conservative - Sevenoaks)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, whether the Royal Mint supplies wholesalers outside the UK, including other EU nations.
Answered by Robert Jenrick
Her Majesty’s Treasury can confirm that The Royal Mint does supply several wholesalers outside the UK, including in other EU countries.
Asked by: Michael Fallon (Conservative - Sevenoaks)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, whether the planned increase to the contributions holiday for SAYE schemes will apply to new SAYE contracts only or also cover pre-existing SAYE contracts.
Answered by Mel Stride - Shadow Chancellor of the Exchequer
The government announced at Autumn Budget that it would extend the Save As You Earn (SAYE) contributions holiday from 6 to 12 months for those on maternity and parental leave from 6 April 2018. After receiving representations from the share plan industry, the government is delaying the implementation of this change until 1 September 2018 to allow for software changes and testing.
The government will, from the same date, extend the SAYE contributions holiday to 12 months for all SAYE plans. This change will extend the benefit to all SAYE participants, including those with pre-existing contracts.
Asked by: Michael Fallon (Conservative - Sevenoaks)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, whether his planned increase to contributions holidays for SAYE schemes will apply to those (a) on maternity leave, (b) on shared parental leave, (c) on adoption leave and (d) who miss payment contributions.
Answered by Mel Stride - Shadow Chancellor of the Exchequer
The government announced at Autumn Budget that it would extend the Save As You Earn (SAYE) contributions holiday from 6 to 12 months for those on maternity and parental leave from 6 April 2018. After receiving representations from the share plan industry, the government is delaying the implementation of this change until 1 September 2018 to allow for software changes and testing.
The government will, from the same date, extend the SAYE contributions holiday to 12 months for all SAYE plans. This change will extend the benefit to all SAYE participants, including those with pre-existing contracts.
Asked by: Michael Fallon (Conservative - Sevenoaks)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made of the potential merits of deferring the upcoming increase in the contributions holiday for SAYE schemes from six to 12 months to allow more time for the share plan industry to undertake (a) system development and (b) regression testing.
Answered by Mel Stride - Shadow Chancellor of the Exchequer
The government announced at Autumn Budget that it would extend the Save As You Earn (SAYE) contributions holiday from 6 to 12 months for those on maternity and parental leave from 6 April 2018. After receiving representations from the share plan industry, the government is delaying the implementation of this change until 1 September 2018 to allow for software changes and testing.
The government will, from the same date, extend the SAYE contributions holiday to 12 months for all SAYE plans. This change will extend the benefit to all SAYE participants, including those with pre-existing contracts.
Asked by: Michael Fallon (Conservative - Sevenoaks)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what plans he has to seek EU State Aid approval to renew the Enterprise Management Incentive scheme; and whether he plans to undertake a review of the limits of that scheme.
Answered by Mel Stride - Shadow Chancellor of the Exchequer
It is the government's intention that the Enterprise Management Incentive scheme should continue. An update will be provided in due course. The government keeps all tax policy under review.
Asked by: Michael Fallon (Conservative - Sevenoaks)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what estimate he has made of the potential cost to the public purse of reducing the period for which employee participants must hold their shares within share incentives plans from five years to three years.
Answered by John Glen
Share Incentive Plans allow employees to receive shares in their employer and benefit from Income Tax, National Insurance, and Capital Gains Tax reliefs. There are no current plans to make changes to Share Incentive Plans. The government keeps all areas of the tax system under review.
The dormant assets scheme enables a portion of funds from dormant accounts held by participating bank and building societies to be distributed to good causes via a central reclaim fund. The Government recently issued its response to the independent Commission of Dormant Assets, and is working with industry to consider how the scheme could be expanded to include a broader range of financial assets.
Asked by: Michael Fallon (Conservative - Sevenoaks)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, if he will make it his policy to increase charitable giving by allowing small residual share incentive plan balances to be donated to charity.
Answered by John Glen
Share Incentive Plans allow employees to receive shares in their employer and benefit from Income Tax, National Insurance, and Capital Gains Tax reliefs. There are no current plans to make changes to Share Incentive Plans. The government keeps all areas of the tax system under review.
The dormant assets scheme enables a portion of funds from dormant accounts held by participating bank and building societies to be distributed to good causes via a central reclaim fund. The Government recently issued its response to the independent Commission of Dormant Assets, and is working with industry to consider how the scheme could be expanded to include a broader range of financial assets.
Asked by: Michael Fallon (Conservative - Sevenoaks)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what steps he is taking to simplify share plans and reduce disincentives to save for people aged 18-30.
Answered by John Glen
The government offers four tax advantaged share schemes, Company Share Option Plan, Share Incentive Plan, Enterprise Management Incentives and Save As You Earn. These enable employers and their employees to mutually benefit from generous Income Tax, National Insurance, and Capital Gains Tax reliefs when they participate. At Autumn Budget 2017 the government announced that employees on the Save As You Earn scheme who take maternity or parental leave will be able to pause their contributions for up to 12 months, extended from the previous limit of 6 months. There are currently no other plans to make changes to the schemes. The government keeps all areas of the tax system under review.
The government is also committed to supporting savers of all incomes and at all stages of life. We have introduced a range of measures, including the Personal Savings Allowance, which mean that over 95% of people pay no tax on their savings income. We have also introduced the Lifetime ISA, which supports younger people to save for the long term by offering them a 25% bonus from the government on savings of up to £4,000 annually.