Asked by: Pippa Heylings (Liberal Democrat - South Cambridgeshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will remove VAT on (a) labour and (b) materials for restoration work on listed buildings.
Answered by James Murray - Chief Secretary to the Treasury
The Government has no plans to remove VAT on restoration work on listed buildings.
VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services. Taxation is a vital source of revenue that helps to fund vital public services.
Evidence suggests that businesses only partially pass on any savings from lower VAT rates. In some cases, reliefs do not represent good value for money, as there is no guarantee that savings will be passed on to consumers.
The Department for Culture, Media and Sport administer the Listed Places of Worship Grant Scheme. This provides grants towards VAT paid on repairs and maintenance to the nation's listed places of worship.
The Government keeps all tax policy under review, and any decisions on tax policy will be announced at fiscal events in the context of the overall public finances.
Asked by: Pippa Heylings (Liberal Democrat - South Cambridgeshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential merits of occupational pension scheme investment supporting economic growth.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
I refer the member to the answer given to PQ UIN 34987 on 6 March 2025.
The Government published the Interim Report of the Pensions Investment Review at Mansion House, which sets out proposals to reform the UK Pensions system. These reforms could unlock up to £80 billion in new productive investment including in businesses and infrastructure, including sustainable infrastructure to help reach the Government’s net zero targets, and help improve returns for savers.
The proposed reforms to the defined contribution workplace pension market will accelerate consolidation, creating fewer, larger schemes, with a minimum scale requirement. This will allow schemes to deliver better value, governance, and investment opportunities, through larger ‘mega-funds’ more able to undertake productive investment.
The Review also proposes reforms to the Local Government Pension Scheme (England and Wales) to tackle fragmentation and inefficiency. The LGPS manages £392 billion worth of assets, and the Interim Report proposes to require all 86 administering authorities to delegate investment management to pools. This will create large pools of professionally managed capital, in line with international best practice, and enhance the capacity and capability of the scheme to continue to drive national, local and regional investment and will help to ensure investments are able to reach all corners of the nation.
The final Pensions Investment Review report, including the final proposals to be legislated for, will be published in the Spring ahead of the introduction of the Pension Schemes Bill.
In addition to these reforms, the Government announced in January that it will pave the way for more well-funded DB pension schemes to share surplus funds with sponsoring employers and members, helping to drive growth by freeing up these funds for the benefit of the economy.
Asked by: Pippa Heylings (Liberal Democrat - South Cambridgeshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she made an assessment of the potential merits of including the (a) role and (b) conduct of HMRC within the terms of reference of the independent review of the loan charge.
Answered by James Murray - Chief Secretary to the Treasury
The Government has commissioned an independent review of the Loan Charge to help bring the matter to a close for those affected whilst ensuring fairness for all taxpayers.
The Government does not think it is right for people affected by the Loan Charge to have to wait years for any progress on bringing this matter to a close for them. The Government has therefore ensured that the review has a focused remit, allowing it to report by this summer. The Government will respond by Autumn Budget 2025.
Alongside the review, the Government is committed to tackling promoters of tax avoidance and will consult on measures to tackle promoters of marketed tax avoidance, including new powers focused on those who own or control promoter organisations and options to tackle legal professionals behind avoidance schemes.
Asked by: Pippa Heylings (Liberal Democrat - South Cambridgeshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will have discussions with Ray McCann on including the role of people who (a) recommended and (b) operated disguised remuneration schemes with the Loan Charge review.
Answered by James Murray - Chief Secretary to the Treasury
The Government has commissioned an independent review of the Loan Charge to help bring the matter to a close for those affected whilst ensuring fairness for all taxpayers.
The Government does not think it is right for people affected by the Loan Charge to have to wait years for any progress on bringing this matter to a close for them. The Government has therefore ensured that the review has a focused remit, allowing it to report by this summer. The Government will respond by Autumn Budget 2025.
Alongside the review, the Government is committed to tackling promoters of tax avoidance and will consult on measures to tackle promoters of marketed tax avoidance, including new powers focused on those who own or control promoter organisations and options to tackle legal professionals behind avoidance schemes.
Asked by: Pippa Heylings (Liberal Democrat - South Cambridgeshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the adequacy of the Independent Review of the Loan Charge.
Answered by James Murray - Chief Secretary to the Treasury
The Government has commissioned an independent review of the Loan Charge to help bring the matter to a close for those affected whilst ensuring fairness for all taxpayers.
The Government does not think it is right for people affected by the Loan Charge to have to wait years for any progress on bringing this matter to a close for them. The Government has therefore ensured that the review has a focused remit, allowing it to report by this summer. The Government will respond by Autumn Budget 2025.
Alongside the review, the Government is committed to tackling promoters of tax avoidance and will consult on measures to tackle promoters of marketed tax avoidance, including new powers focused on those who own or control promoter organisations and options to tackle legal professionals behind avoidance schemes.
Asked by: Pippa Heylings (Liberal Democrat - South Cambridgeshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to paragraph 3.11 of the Autumn Budget 2024, published on 30 October 2024, what assessment she has made of the potential impact of investments by occupational pension schemes on the (a) place, (b) people and (c) net zero pillars of the growth mission.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
The Government published the Interim Report of the Pensions Investment Review at Mansion House, which sets out proposals to reform the UK Pensions system. These reforms could unlock up to £80 billion in new productive investment including in businesses and infrastructure. Amongst other things this would help improve returns for savers and support the net-zero transition.
The proposed reforms to the defined contribution workplace pension market will accelerate consolidation, creating fewer, larger schemes. This will allow schemes to deliver better value, governance, and investment opportunities, through larger ‘mega-funds’ more able to undertake productive investment.
The Review also proposes reforms to the Local Government Pension Scheme (England and Wales) to tackle fragmentation and inefficiency. The LGPS manages £392 billion worth of assets, and the Interim Report proposes to require all 86 administering authorities to delegate investment management to pools. This will create large pools of professionally managed capital, in line with international best practice, and enhance the capacity and capability of the scheme to continue to drive national, regional and local investment.
The final Pensions Investment Review report, including the final proposals to be legislated for, will be published in the Spring ahead of the introduction of the Pension Schemes Bill.
Asked by: Pippa Heylings (Liberal Democrat - South Cambridgeshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of implementing a clawback mechanism into the proposed changes to APR and BPR.
Answered by James Murray - Chief Secretary to the Treasury
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.
A “clawback” would mean inheritance tax would only be due if the relevant assets are sold within a specified time period after a death. Introducing this mechanism, as some have suggested, could mean some of the wealthiest estates pay less inheritance tax compared to the proposed reforms. The Government disagrees with suggestions that a clawback would raise the same revenue as the reforms being introduced from 6 April 2026; it would raise much less, which would mean raising taxes elsewhere or lowering public spending. It would also add complexity to the tax system and continue to attract the very wealthiest to tax plan since beneficiaries could hold onto the assets over the specified clawback period just to escape the tax.
Asked by: Pippa Heylings (Liberal Democrat - South Cambridgeshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had with (a) the Country Land and Business Association and (b) other industry bodies to support working farms, in the context of her proposed changes to (i) agricultural property relief and (b) business property relief.
Answered by James Murray - Chief Secretary to the Treasury
As the Minister responsible for the UK tax system, I have participated in several meetings with agricultural organisations since Autumn Budget 2024 to listen to views. Similarly, ministers from other Departments, such as the Department for Environment, Food and Rural Affairs, have also held meetings with these organisations to listen to their views.
Most recently, on 18 February 2025, the Minister for Food Security and Rural Affairs and I met with representatives from various agricultural organisations, including the President of the Country Land and Business Association.
Asked by: Pippa Heylings (Liberal Democrat - South Cambridgeshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps her Department is taking to improve the effectiveness of the initial assessment process for research and development tax relief claims.
Answered by James Murray - Chief Secretary to the Treasury
All Research and Development (R&D) claims go through a risk screening process to determine which need further checking, with the majority paid without a formal compliance check.
Where risks are identified, HMRC opens compliance checks to investigate the claims, within established legislative time limits and with wider taxpayer safeguards such as appeal rights. Where a check is opened into a claim that on further investigation is found to be fully eligible, HMRC aims to close its check and approve the claim as quickly as possible.
HMRC has required claimants to submit an Additional Information Form as part of their claim since August 2023. The information provided in these forms enhances HMRC’s risking process by helping to more accurately identify claims that may not be compliant and reduces the risk of valid claims being picked up for a compliance check.
To strengthen the administration of the reliefs and provide businesses with greater certainty the Government announced at the Autumn Budget that it will explore widening the use of advance clearances for R&D reliefs.
Asked by: Pippa Heylings (Liberal Democrat - South Cambridgeshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of providing compensation for small shareholders for the loss of shares in Northern Rock Plc.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
An independent valuer determined that Northern Rock shares were of no value immediately prior to the company being taken into public ownership, and therefore no compensation was due. This independent valuation was upheld in the both the Upper Tribunal in 2011 and the Court of Appeal in 2013. HM Treasury considers this matter settled.