Asked by: Patricia Gibson (Scottish National Party - North Ayrshire and Arran)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what impact assessment his Department has undertaken on the potential effect on electric car take-up of imposing a VAT levy on the charging of electric vehicles for private use.
Answered by Jesse Norman
In order to keep costs down for families, the supply of electricity for domestic use, including charging electric vehicles at home, attracts the reduced rate of VAT (5 per cent).
Electricity supplied at EV charging points in public places is subject to the standard rate of VAT (20 per cent). There has been no change to this policy and the Government has no plans to review these provisions.
Asked by: Patricia Gibson (Scottish National Party - North Ayrshire and Arran)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions officials in his Department have had with representatives of HMRC on the classification of long-term and short-term vessels under the capital allowance scheme for commercial maritime vessels.
Answered by Jesse Norman
Treasury officials are in regular contact with HMRC colleagues. In line with the practice of successive administrations, details of internal discussions are not normally disclosed.
HMRC do not classify which assets should be written down at the main or special rate of writing down allowances. Instead, businesses should identify whether an asset they have acquired has a useful economic life (UEL) of more or less than 25 years when new. This UEL test for plant and machinery should be applied on the asset as a whole, rather than individual components; since for tax purposes the asset is depreciated as a single unit.
Asked by: Patricia Gibson (Scottish National Party - North Ayrshire and Arran)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions officials in his Department have had with relevant stakeholders on HMRC’s enforcement of classification of long-term and short-term assets for commercial maritime vessels.
Answered by Jesse Norman
Treasury officials are in regular contact with HMRC colleagues. In line with the practice of successive administrations, details of internal discussions are not normally disclosed.
HMRC do not classify which assets should be written down at the main or special rate of writing down allowances. Instead, businesses should identify whether an asset they have acquired has a useful economic life (UEL) of more or less than 25 years when new. This UEL test for plant and machinery should be applied on the asset as a whole, rather than individual components; since for tax purposes the asset is depreciated as a single unit.