Asked by: Mike Martin (Liberal Democrat - Tunbridge Wells)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of removing VAT on school uniforms.
Answered by James Murray - Exchequer Secretary (HM Treasury)
VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services. VAT is the UK’s second largest tax forecast to raise £171 billion in 2024/25. Taxation is a vital source of revenue that helps to fund vital public services including schools and hospitals.
Children’s clothing designed for young children, including branded school uniform, already benefits from VAT relief. To ensure that this relief is carefully targeted this relief is limited to clothing designed and labelled for children under the age of 14.
Increasing the scope of this VAT relief to all school uniform would come at a cost to the Exchequer, with no guarantee that any reliefs would be passed on to consumers. We therefore have no plans to make changes here.
Asked by: Mike Martin (Liberal Democrat - Tunbridge Wells)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the planned reforms to agricultural property relief, what steps her Department will take to support farmers who have lost their exemption because their (a) spouse or (b) civil partner has died.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government published information about the reforms to agricultural property relief at www.gov.uk/government/publications/agricultural-property-relief-and-business-property-relief-reforms.
The reforms mean that individuals can access 100% relief for the first £1 million of combined business and agricultural assets, and 50% relief thereafter - meaning an effective tax rate of up to 20% – regardless of their relationship status. Any liability can also be paid over 10 years interest free – a benefit that is not seen anywhere else in the inheritance tax system.
It is expected that up to around 2,000 estates will be affected by the changes to APR and BPR in 2026-27, with around half of those being claims that involve AIM shares. Almost three-quarters of estates claiming agricultural property relief (or those claiming agricultural property relief and business property relief together) are expected to be unaffected by these reforms.
Asked by: Mike Martin (Liberal Democrat - Tunbridge Wells)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of proposed reforms to agricultural property relief on farmers whose (a) spouse and (b) civil partner has died.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government published information about the reforms to agricultural property relief and business property relief at www.gov.uk/government/publications/agricultural-property-relief-and-business-property-relief-reforms.
It is expected that up to around 2,000 estates will be affected by the changes to APR and BPR in 2026-27, with around half of those being claims that involve AIM shares. Almost three-quarters of estates claiming agricultural property relief (or those claiming agricultural property relief and business property relief together) are expected to be unaffected by these reforms.
In accordance with standard practice, a tax information and impact note will be published alongside the draft legislation before the relevant Finance Bill.
Asked by: Mike Martin (Liberal Democrat - Tunbridge Wells)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of the potential impact of disguised employment practices in the hair and beauty sector on (a) VAT and (b) National Insurance revenue.
Answered by James Murray - Exchequer Secretary (HM Treasury)
HMRC has not estimated the size of the disguised employment risk in this sector.
The Government is aware of concerns over the rent-a-chair model in the hair and beauty sector. When this model is operated properly, the Government considers it a legitimate working practice.