Asked by: Paula Barker (Labour - Liverpool Wavertree)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has made an assessment of the potential merits of removing plug-in hybrid vehicles from the additional vehicle tax levied on cars with a list price over £40,000 to help meet the UK's target on carbon neutrality in 2050.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
Hybrid cars and vans, both non-plug in and plug in, have a role to play in reducing emissions from road transport during the transition to all new cars and vans being fully zero emission at the tailpipe. This is why hybrid vehicles receive a £10 annual discount on VED, although the greatest incentives are for zero-emission vehicles, which pay no VED.
Petrol, diesel and hybrid cars with a list price exceeding £40,000 also pay an additional supplement for five years as well as paying the standard rate, which means those who can afford the most expensive cars pay more than the standard rate imposed on other drivers. As over 80% of all new cars have a list price below £40,000, this was considered a suitable threshold for distinguishing the luxury end of the market. At Budget 2020, the Government announced that, from 1 April 2020, zero-emission cars registered prior to 1 April 2025 are exempt from this supplement.
As with all taxes, the Government keeps VED under review and any changes are considered by the Chancellor.
Asked by: Paula Barker (Labour - Liverpool Wavertree)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what action is being taken against people who promoted and operated schemes now subject to the Loan Charge.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Government and HM Revenue and Customs (HMRC) are committed to continuing to tackle promoters and operators of tax avoidance schemes. This includes challenging the entities and individuals who promote disguised remuneration loan schemes.
On 19 March 2020, HMRC published their strategy for tackling promoters of tax avoidance schemes. The strategy sets out HMRC’s work to date and outlines how HMRC will continue to take robust action against promoters of tax avoidance. The Promoter Strategy is available on GOV.UK. HMRC consulted on a package of measures to tackle promoters of tax avoidance schemes over Summer 2020.
On 12 November 2020, the Government announced further proposals to tackle promoters, which it will consult on this spring. Umbrella companies advising individuals to use disguised remuneration tax avoidance schemes are within the scope of the legislation that applies to promoters and others who facilitate tax avoidance. Where appropriate, they are subject to the range of measures laid out in HMRC’s strategy for tackling promoters of tax avoidance schemes.
Asked by: Paula Barker (Labour - Liverpool Wavertree)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the number of (a) doctors and (b) nurses who (i) are subject to the Loan Charge and (ii) have settled to avoid that Charge.
Answered by Jesse Norman - Shadow Leader of the House of Commons
HMRC do not hold the requested estimates and do not routinely collect data on professions.
Asked by: Paula Barker (Labour - Liverpool Wavertree)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many armed forces veterans (a) are subject to and (b) have settled to avoid paying the Loan Charge.
Answered by Jesse Norman - Shadow Leader of the House of Commons
HMRC do not hold the requested estimates and do not routinely collect data on professions.