Asked by: Simon Opher (Labour - Stroud)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to increase the (a) Plastic Packaging Tax rate and (b) recycled content requirement to promote domestic recycling.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Plastic Packaging Tax was introduced in April 2022 under the previous government and provides a price incentive for businesses to use recycled plastic in the manufacture of plastic packaging – thereby stimulating the collection and recycling of plastic waste.
All tax rates and thresholds are reviewed at fiscal events.
Asked by: Simon Opher (Labour - Stroud)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will raise the expensive car supplement threshold for electric and zero emission vehicles.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
As set out at Autumn Budget 2024, the government recognises the disproportionate impact of the current VED Expensive Car Supplement threshold for those purchasing zero emission cars and will consider raising the threshold for zero emission cars only at a future fiscal event, to make it easier to buy electric cars.
Asked by: Simon Opher (Labour - Stroud)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential merits of removing the tax exemption from woodlands.
Answered by James Murray - Chief Secretary to the Treasury
Income Tax and Corporation Tax do not apply to woodlands managed on a commercial basis and with a view to making profits. This treatment was introduced in 1988 to prevent high-income individuals sheltering other income from tax by setting it against expenditure on forestry.
Asked by: Simon Opher (Labour - Stroud)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of extending eligibility for the Enterprise Investment Scheme tax relief to people investing in community assets that are leased and operated by community groups but owned by commercial landlords.
Answered by James Murray - Chief Secretary to the Treasury
The venture capital schemes, including the Enterprise Investment Scheme (EIS), are intended to incentivise investment into early-stage, higher-risk companies that are seeking to make profit, and to grow and develop their businesses. To ensure that the schemes are targeted at higher risk companies which face the greatest difficulties in accessing finance, and to provide value for money to UK taxpayers, certain lower-risk activities are excluded, including the leasing of land.
The Government supports community investment in other ways. For example, the Community Investment Tax Relief (CITR) stimulates private investment in disadvantaged communities. It provides a tax incentive to individuals and companies that invest in accredited Community Development Financial Institutions (CDFIs), which in turn invest in enterprises located in or serving those communities. In 2022/23, CITR accredited CDFIs raised over £11m of investment and made 355 loans worth over £20m to enterprises located in disadvantaged communities.
Asked by: Simon Opher (Labour - Stroud)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential merits of introducing (a) tax incentives to help reduce packaging waste.
Answered by James Murray - Chief Secretary to the Treasury
There are a several tax incentives already in place to reduce plastic waste. These include the Plastic Packaging Tax, which encourages use of more recycled plastic in packaging and Landfill Tax, which encourages waste to be diverted from landfill to more sustainable options, such as recycling.
Asked by: Simon Opher (Labour - Stroud)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether woodlands qualify for inheritance tax relief.
Answered by James Murray - Chief Secretary to the Treasury
Woodlands can qualify for relief from inheritance tax. That relief may be Agricultural Property Relief (APR) if the woodlands were occupied and used with agricultural land, such as a shelter belt. Alternatively, Business Property Relief (BPR) may be available where the woodlands were actively used for commercial purposes, subject to certain conditions. Furthermore, Woodlands Relief may apply where the woodlands don’t qualify for APR and BPR. This relief defers the charge to inheritance tax on the value of trees (not the value of the land) transferred on death to the point at which the trees are disposed of.
Asked by: Simon Opher (Labour - Stroud)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether land farmed under the Environmental Land Management Scheme will be exempt from new inheritance tax rules for farms.
Answered by James Murray - Chief Secretary to the Treasury
The environmental value of land farmed or managed under the Environmental Land Management Scheme (ELMS) will be eligible for Agricultural Property Relief (APR) of up to 100% from 6th April 2025. From 6th April 2026, the 100% rate of relief will continue for the first £1 million of combined agricultural and business property, and it will be 50% thereafter. This will include land in ELMS.
Asked by: Simon Opher (Labour - Stroud)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of introducing regulations to enhance financial transparency within the hairdressing industry.
Answered by Tulip Siddiq
Financial transparency is key to ensuring cash-based businesses meet their legal obligations, such as registering with HMRC and paying taxes promptly.
However, these benefits must be balanced against the burdens on business created by new regulation.
While cash-based businesses such as hairdressers are not regulated for money laundering purposes, they will regularly interact with regulated financial businesses, such as banks. These regulated entities are required to report any suspicious financial activity by their customers.
Asked by: Simon Opher (Labour - Stroud)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the effectiveness of the Cycle to Work Scheme in improving cycle ownership among people on low incomes.
Answered by James Murray - Chief Secretary to the Treasury
The Cycle to Work scheme is a benefit-in-kind provided by employers to their employees. A benefit-in-kind is a form of non-cash remuneration provided by employers to their employees. Income tax and National Insurance contribution relief is provided on the scheme to both employers and their employees via salary sacrifice arrangements.
Employees earning at or near the National Minimum Wage (NMW) cannot access salary sacrifice if the arrangement will take their contractual salary below the relevant NMW rate. The Government is not currently considering changing the NMW legislation to apply to an employee’s salary after deductions have been made for salary sacrifice.
HMRC has commissioned an evaluation of the effectiveness of the Cycle to Work scheme and will publish its findings in due course.