Asked by: Mims Davies (Conservative - East Grinstead and Uckfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of an independent review of inheritance tax changes for family farms.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Ministers and officials from multiple Government departments have had several meetings with organisations on this matter since Autumn Budget 2024. After listening, the Government believes the approach set out is an appropriate one.
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, and fixing the public finances. 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 reforms are expected to result in up to 520 estates claiming agricultural property relief, including those also claiming business property relief, paying more inheritance tax in 2026-27. Almost three-quarters of estates claiming agricultural property relief, including those that also claim for business property relief, will not pay any more tax as a result of the changes in 2026-27, based on the latest available data.
The reforms to agricultural property relief and business property relief are forecast to raise a combined £520 million in 2029-30. The independent Office for Budget Responsibility certified this costing at Autumn Budget 2024 and it does not expect the reforms to have a significant macroeconomic impact.
Asked by: Mims Davies (Conservative - East Grinstead and Uckfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has made an assessment of the potential impact of changes in the level of National Insurance contributions on victims support services.
Answered by James Murray - Chief Secretary to the Treasury
The Government publishes Tax Information and Impact Notes (TIINs) for tax policy changes. TIINs give a clear explanation of the policy objective and an assessment of the impacts including on the Exchequer, individuals and families, businesses including civil society organisations and others. The TIIN for the employer NICs changes was published on 13 November 2024.
Asked by: Mims Davies (Conservative - East Grinstead and Uckfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of changes to employers' National Insurance contributions on women-owned businesses.
Answered by James Murray - Chief Secretary to the Treasury
The Government publishes Tax Information and Impact Notes (TIINs) for tax policy changes. TIINs give a clear explanation of the policy objective and an assessment of the impacts including on the Exchequer, individuals and families, businesses including civil society organisations and others. The TIIN for the employer NICs changes was published on 13 November 2024.
The Government is partnering with business to maximise women’s contribution to the economy. In line with the ambition of the Invest in Women Taskforce to expand access to funding for female entrepreneurs, the British Business Bank is investing £50 million in women-led funds. HMT’s Women in Finance Charter is supporting financial services firms to make the most of their female talent.
Asked by: Mims Davies (Conservative - East Grinstead and Uckfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, What assessment her Department has made of the potential impact of changes in the level of National Insurance contributions on young people in part time work.
Answered by James Murray - Chief Secretary to the Treasury
The Office for Budget Responsibility’s October 2024 Economic and Fiscal Outlook expects that the Employer National Insurance Contributions package will lead to a reduction in the participation rate of 0.1 per cent from 2025-26 onwards. Overall, once the impact of all budget measures are taken into consideration, the OBR expect the employment level to increase from 33.1 million in 2024 to 34.3 million in 2029.
Employers have a choice about how they respond to the NICs increase. The Government recognises that employers may respond by increasing employees’ wages more slowly than they would have otherwise, alongside absorbing pressures through prices, efficiencies or lower profits.
Employers will also continue to benefit from employer NICs reliefs including for hiring under 21s and under 25 apprentices, where eligible.
Asked by: Mims Davies (Conservative - East Grinstead and Uckfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of proposed increases to employer National Insurance contributions on women in full-time work.
Answered by James Murray - Chief Secretary to the Treasury
The Office for Budget Responsibility’s October 2024 Economic and Fiscal Outlook expects that the Employer National Insurance Contributions package will lead to a reduction in the participation rate of 0.1 per cent from 2025-26 onwards. Overall, once the impact of all budget measures are taken into consideration, the OBR expect the employment level to increase from 33.1 million in 2024 to 34.3 million in 2029.
Employers have a choice about how they respond to the NICs increase. The Government recognises that employers may respond by increasing employees’ wages more slowly than they would have otherwise, alongside absorbing pressures through prices, efficiencies or lower profits.
Employers will also continue to benefit from employer NICs reliefs including for hiring under 21s and under 25 apprentices, where eligible.
Asked by: Mims Davies (Conservative - East Grinstead and Uckfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of proposed increases to employer National Insurance contributions on women in part-time work.
Answered by James Murray - Chief Secretary to the Treasury
The Office for Budget Responsibility’s October 2024 Economic and Fiscal Outlook expects that the Employer National Insurance Contributions package will lead to a reduction in the participation rate of 0.1 per cent from 2025-26 onwards. Overall, once the impact of all budget measures are taken into consideration, the OBR expect the employment level to increase from 33.1 million in 2024 to 34.3 million in 2029.
Employers have a choice about how they respond to the NICs increase. The Government recognises that employers may respond by increasing employees’ wages more slowly than they would have otherwise, alongside absorbing pressures through prices, efficiencies or lower profits.
Employers will also continue to benefit from employer NICs reliefs including for hiring under 21s and under 25 apprentices, where eligible.
Asked by: Mims Davies (Conservative - East Grinstead and Uckfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of the rise in National Insurance contributions on women’s charities.
Answered by James Murray - Chief Secretary to the Treasury
The Government publishes Tax Information and Impact Notes (TIINs) for tax policy changes. TIINs give a clear explanation of the policy objective and an assessment of the impacts including on the Exchequer, individuals and families, businesses including civil society organisations and others. The TIIN for the employer NICs changes was published on 13 November 2024.
Asked by: Mims Davies (Conservative - East Grinstead and Uckfield)
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 level of national insurance on women’s shelters.
Answered by James Murray - Chief Secretary to the Treasury
The Government publishes Tax Information and Impact Notes (TIINs) for tax policy changes. TIINs give a clear explanation of the policy objective and an assessment of the impacts including on the Exchequer, individuals and families, businesses including civil society organisations and others. The TIIN for the employer NICs changes was published on 13 November 2024.