Asked by: Vince Cable (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential effect on private sector (a) employment and (b) workforce structures of extending IR35 off-payroll tax rules to the private sector.
Answered by Mel Stride - Shadow Chancellor of the Exchequer
The Government has recently consulted on non-compliance with the off-payroll working rules in the private sector. The Government is carefully considering the responses received, and will issue its response in due course.
The impacts and effect on business will depend on the outcome of the consultation.
Asked by: Vince Cable (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether it is his policy to extend IR35 off-payroll tax rules to the private sector.
Answered by Mel Stride - Shadow Chancellor of the Exchequer
The Government has recently consulted on non-compliance with the off-payroll working rules in the private sector. The Government is carefully considering the responses received, and will issue its response in due course.
The impacts and effect on business will depend on the outcome of the consultation.
Asked by: Vince Cable (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment has been made of the effect of (a) changes in mortgage interest tax relief for private landlords and (b) the end of the wear and tear tax allowance since the inception of those measures in April 2017.
Answered by Mel Stride - Shadow Chancellor of the Exchequer
It is too early to properly assess the wider impacts of the restrictions to finance cost relief for landlords introduced in April 2017 as these are still being phased in. But given that only a small proportion of the housing market is affected by these changes, the government does not expect them to have a large impact on either house prices or rent levels. The Office for Budget Responsibility (OBR) also expects the impact on the housing market will be small.
The government expects that tenancy conditions will improve and more landlords will benefit from the reform of Wear and Tear allowance. Since April 2016 Replacement of domestic items relief has allowed all residential landlords to deduct actual costs incurred on replacing furnishings. All landlords, not just those of fully furnished properties, are now able to obtain tax relief for the costs of renewing furnishings in their properties.
Asked by: Vince Cable (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate his Department has made of the cost of removing from business rates (a) new investment in plant and machinery and (b) all plant and machinery.
Answered by Mel Stride - Shadow Chancellor of the Exchequer
The government has carefully considered the case for removing plant and machinery (P&M). The vast majority of P&M is not rateable.
For P&M that is rateable, delivering a change would be fiscally costly and operationally challenging. P&M such as sprinkler systems, lighting, and heating systems are integral features of property. To exclude them from the calculation of rateable values, one would need to determine the market rent of the building if it did not include these key integral features.