Asked by: Neil Gray (Scottish National Party - Airdrie and Shotts)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to introduce legislative proposals to protect potential beneficiaries of employee share schemes from that scheme being plundered by trustees.
Answered by Jesse Norman
The Government keeps all tax legislation under regular review and any changes are considered in line with its priorities. The Government does not plan to introduce legislation at this time to regulate the actions of trustees of employee share schemes.
Asked by: Neil Gray (Scottish National Party - Airdrie and Shotts)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will take steps to ensure that HMRC pursues pension scammers holding stolen funds.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Most pension avoidance scheme promoters do not break the tax rules. But where they do, HMRC will pursue them. HMRC is responsible for pension tax relief but not for the regulation of pension schemes. Regulation is the responsibility of the Pensions Regulator and the Financial Conduct Authority. HMRC works with other regulators and law enforcement agencies, through Project Bloom, to ensure a co-ordinated and joined up approach is taken to tackle pension avoidance schemes.Asked by: Neil Gray (Scottish National Party - Airdrie and Shotts)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many tax rule breaches resulting from pension scams have been identified by HMRC in each of the last five years.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
HMRC deals with tackling tax avoidance, evasion and other forms of non-compliance.
HMRC is responsible for pension tax relief but not for the regulation of pension schemes. Regulation is the responsibility of the Pensions Regulator and the Financial Conduct Authority.
Since 2015 individuals over 55 have been able to legally withdraw amounts from their pension pots, pay tax on the amounts withdrawn and invest the amounts however they wish. However, as the amounts withdrawn and the investment occurs outside of the pensions tax wrapper, this does not give rise to tax breaches, provided the relevant tax charges are paid.
Pension investment frauds are arguably a subset of investment frauds. Serious or complex fraud is a criminal offence and is investigated by the Serious Fraud Office (SFO). The Financial Conduct Authority (FCA), also has as one of its statutory objectives the reduction of financial crime, which includes fraud.
HMRC empathises with anyone who believes that they may have been misled about their pension investments. We will continue working closely with the Pensions Regulator and Financial Conduct Authority to tackle pension avoidance schemes.
Asked by: Neil Gray (Scottish National Party - Airdrie and Shotts)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will take steps to ensure that recipients of the Scottish Government's health and social care £500 bonus payment who receive tax credits will be able to keep the full amount of that bonus payment.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
COVID-19 is the biggest threat the UK has faced in decades. Key workers, including NHS staff and social care workers, have already demonstrated remarkable commitment to keeping the public safe in the continuing fight against the virus. The Government hugely values and appreciates these vital contributions to the COVID 19 response.
Under the longstanding rules any payments made in connection with an employment are chargeable to income tax and National Insurance Contributions. They also count as income for the purposes of calculating entitlement to certain benefits. This was the case when the Welsh Government announced similar payments earlier this year.
We’ve provided over £8.2billion of extra funding for the Scottish Government this year to support people, businesses and public services.
If it is their intention for NHS staff and social care workers in Scotland to benefit by at least £500, the Scottish Government has the powers and funding to gross up the payments.
Asked by: Neil Gray (Scottish National Party - Airdrie and Shotts)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many people in (a) Scotland and (b) Airdrie and Shotts constituency participated in the (a) save as you earn scheme and (b) share incentive plan in each of the last three years for which figures are available.
Answered by Jesse Norman
The Save As You Earn (SAYE) and Share Incentive Plan (SIP) schemes are tax-advantaged employee share schemes offered by the Government.
On point (b) of UIN 119250, the value of gain for the whole of the UK for SAYE schemes is provided in the Employee Share Scheme national statistics. A breakdown by country could only be provided at a disproportionate cost. The data for the past three years (whole UK) is provided in the table below:
Year | Value of gain on exercised options (£m) |
2018/19 | 420 |
2017/18 | 350 |
2016/17 | 360 |
On UIN 119249, point (a) of UIN 119250, and UIN 119251, the information requested is not readily available and would require analysis of multiple data sources and therefore could only be provided at a disproportionate cost.
Asked by: Neil Gray (Scottish National Party - Airdrie and Shotts)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the average (a) value of savings held in save as you earn schemes is at the point that the options are exercised and (b) growth in value of save as you earn schemes at the point of maturity in (i) England, (ii) Scotland and (iii) Wales.
Answered by Jesse Norman
The Save As You Earn (SAYE) and Share Incentive Plan (SIP) schemes are tax-advantaged employee share schemes offered by the Government.
On point (b) of UIN 119250, the value of gain for the whole of the UK for SAYE schemes is provided in the Employee Share Scheme national statistics. A breakdown by country could only be provided at a disproportionate cost. The data for the past three years (whole UK) is provided in the table below:
Year | Value of gain on exercised options (£m) |
2018/19 | 420 |
2017/18 | 350 |
2016/17 | 360 |
On UIN 119249, point (a) of UIN 119250, and UIN 119251, the information requested is not readily available and would require analysis of multiple data sources and therefore could only be provided at a disproportionate cost.
Asked by: Neil Gray (Scottish National Party - Airdrie and Shotts)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the average contribution of (a) save as you earn and (b) share incentive plan schemes to the lifetime savings of people that use those schemes.
Answered by Jesse Norman
The Save As You Earn (SAYE) and Share Incentive Plan (SIP) schemes are tax-advantaged employee share schemes offered by the Government.
On point (b) of UIN 119250, the value of gain for the whole of the UK for SAYE schemes is provided in the Employee Share Scheme national statistics. A breakdown by country could only be provided at a disproportionate cost. The data for the past three years (whole UK) is provided in the table below:
Year | Value of gain on exercised options (£m) |
2018/19 | 420 |
2017/18 | 350 |
2016/17 | 360 |
On UIN 119249, point (a) of UIN 119250, and UIN 119251, the information requested is not readily available and would require analysis of multiple data sources and therefore could only be provided at a disproportionate cost.
Asked by: Neil Gray (Scottish National Party - Airdrie and Shotts)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to exempt the covid-19 self isolation grant from income tax.
Answered by Jesse Norman
The UK Government introduced the Test and Trace Support Payment scheme in England to support those on low incomes who cannot work from home and are therefore financially affected by self-isolating.
As these payments – and payments from equivalent schemes in the devolved administrations – are linked to employment, the legislative default is that these payments are subject to income tax and National Insurance Contributions. This is in line with the tax treatment of other COVID-19 support payments, such as the Self-Employment Income Support Scheme and the Coronavirus Job Retention Scheme.
However, the UK Government has granted the Test and Trace Support Payment in England an exemption from National Insurance Contributions in order to reduce the administrative burden on both local authorities and employers. The Government is working with the devolved administrations to extend this National Insurance Contributions exemption to their equivalent schemes.
Asked by: Neil Gray (Scottish National Party - Airdrie and Shotts)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent guidance he has issued to HMRC on the tax treatment of the victims of pension scams.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
We take the issue of pension scams very seriously. The government is committed to protecting people from pension scams and pursuing those who perpetuate pension scams wherever possible.
In 2012 the government established Project Bloom, a cross-government taskforce currently led by the Pensions Regulator (TPR), to tackle scams and identify emerging threats.
HMRC will continue to come down hard on scammers who we identify, working closely with the Pensions Regulator and Financial Conduct Authority in a cross-agency approach.
HMRC does not hold an estimate of the number of breaches of tax law which were made as a result of pension scams.