Asked by: Patrick Grady (Scottish National Party - Glasgow North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he made of the potential merit of equalising the VAT regime for (a) residential off-street parking and (b) public charging for electric vehicles.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
The Government has no plans to review the current rate of VAT applied to electric vehicle (EV) charging.
In order to keep costs down for families, the supply of electricity for domestic use, including charging electric vehicles at home, attracts the 5 per cent reduced rate of VAT. However, electricity supplied at EV charging points in public places is subject to the standard 20 per cent rate of VAT.
Expanding the existing relief would come at a cost. VAT makes a significant contribution towards the public finances, raising around £130 billion in 2019-20, and helps fund the Government's priorities including the NHS, schools, and defence. Any loss in tax revenue would have to be balanced by a reduction in public spending, increased borrowing, or increased taxation elsewhere.
Asked by: Patrick Grady (Scottish National Party - Glasgow North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the impact of additional (a) customs charges and (b) other charges on people sending and receiving packages from the EU as a result of the UK having left the EU.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
The extent to which any charges that may apply affect people sending and receiving packages is based on a range of factors, including individual business decisions and the origin and destination of the goods.
The UK-EU Trade and Cooperation Agreement seeks to reduce the costs for traders of customs processes introduced following the end of the transition period with the EU. It supports efficient customs arrangements and ensures that goods originating in the EU or UK are not subject to tariffs. For goods that do not meet requirements of the rules of origin, tariffs still apply.
Imports into the UK are subject to VAT, unless covered by a specific relief, while exports from UK businesses to EU customers are zero-rated for VAT purposes.
The EU VAT treatment of UK goods is a matter for the EU.
Asked by: Patrick Grady (Scottish National Party - Glasgow North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will issue a response to Early Day Motion 734, Barnett Consequentials from the Culture Recovery Fund.
Answered by Simon Clarke
The Barnett formula applies to changes in departmental DEL budgets, not when departments make spending or policy announcements.
The UK government has provided the Scottish Government with an additional £6.5 billion of Barnett-based funding this year. It is for the Scottish Government to decide how to allocate this funding across its devolved responsibilities, including how to provide support to the culture sector.
If the Treasury provides additional funding to departments in areas that are devolved in Scotland then the Scottish Government will receive additional funding through the Barnett formula. Final funding allocations will be confirmed at Supplementary Estimates.
Asked by: Patrick Grady (Scottish National Party - Glasgow North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will publish a response to Early Day Motion 420 on Introducing a wealth tax.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
The Government is committed to a fair tax system in which those with the most contribute the most. The UK already taxes assets and wealth across many different economic activities, including the acquisition, holding, transfer and disposal of assets, and income derived from assets.
Notably, the Wealth Tax Commission, which has no connection or link to the Government, found that if considering Inheritance Tax, Capital Gains Tax, Stamp Duty and Stamp Duty Land Tax, the UK is among the top of the G7 countries for wealth taxes as a percentage of total wealth.
The priority right now remains to support jobs and the economy. Getting people back to work and encouraging and incentivising businesses to take on new employees and new apprentices ultimately creates the wealth that funds our public services.
Asked by: Patrick Grady (Scottish National Party - Glasgow North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the oral contribution of the Deputy Prime Minister of 22 September 2021, Official Report, Column 277, that Chevening is funded by a charity and not the public purse, whether that charity has received any funding through the Gift Aid scheme in each of the last ten years.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
HM Revenue and Customs has a statutory duty to maintain taxpayer confidentiality, and cannot comment on the affairs of individual organisations.
Asked by: Patrick Grady (Scottish National Party - Glasgow North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the total tax receipts paid to the UK Exchequer by UK citizens registered as overseas electors in each of the last five financial years.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
No estimate has been made of the information requested. HM Revenue and Customs (HMRC) cannot identify individuals registered as overseas electors within tax data.
Asked by: Patrick Grady (Scottish National Party - Glasgow North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the number of UK citizens registered as overseas electors who have been liable for (a) UK Income Tax and (b) UK Capital Gains Tax in each of the last five financial years.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
No estimate has been made of the information requested. HM Revenue and Customs (HMRC) cannot identify individuals registered as overseas electors within tax data.
Asked by: Patrick Grady (Scottish National Party - Glasgow North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the total number of unauthorised withdrawals from Lifetime ISAs was in each financial year since 2015-16.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Information on unauthorised Lifetime ISA withdrawals will be published in the next HMRC savings statistics publication and will be available via the gov.uk website.
Asked by: Patrick Grady (Scottish National Party - Glasgow North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many people have been charged for making unauthorised withdrawals from Lifetime ISAs in each financial year since 2015-16.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Information on unauthorised Lifetime ISA withdrawals will be published in the next HMRC savings statistics publication and will be available via the gov.uk website.
Asked by: Patrick Grady (Scottish National Party - Glasgow North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of restricting tax relief for private equity companies which take over UK-based companies to (a) prevent them from offsetting debt against their corporation tax liability and (b) require them to pay tax on their turnover.
Answered by Jesse Norman
Groups of companies which are owned by private equity funds are subject to the same UK tax rules as other companies. The UK has some of the world’s most comprehensive rules limiting relief for interest. Tax relief is only available for interest on debts incurred for commercial purposes and on arm’s length terms. It is further limited by the Corporate Interest Restriction, introduced from 2017 in line with the OECD-G20 Base Erosion and Profit Shifting project.
Unlike profit taxes, a turnover tax would not take into account businesses’ ability to pay, meaning those with low profit margins would be disproportionately burdened. If applied to all businesses in a supply chain, multiple layers of tax could accrue, the cost of which could be passed onto consumers. Rather than applying a general turnover tax, the UK has a value added tax, VAT, which applies to all companies with taxable turnover over the threshold, including companies owned by private equity funds.