Written questions by Franklin.

Whether HMRC has issued guidance for councillors on the application of Making Tax Digital for Income Tax; and whether further guidance is planned.

Awaiting answer.

Whether councillors will continue to be able to claim allowable expenses against PAYE councillor income under Making Tax Digital for Income Tax; and what mechanism will apply for claiming such expenses.

Awaiting answer.

How councillor-related expenses should be reported under Making Tax Digital for Income Tax where a councillor also has self-employed or property income above the relevant threshold.

Awaiting answer.

Whether councillors whose only income is a PAYE councillor allowance and related expenses are within the scope of Making Tax Digital for Income Tax.

Awaiting answer.

What assessment she has made the potential merits of a temporary cut to VAT, based on grassroots music venue capacity, to stimulate grassroots music activity.

VAT is a broad-based tax on consumption, and the standard rate applies to most goods and services, including event tickets. VAT is charged on the total price paid by the consumer, and any additional charges or levies applied prior to sale would generally form part of the taxable amount. Tax breaks, such as reduced VAT rates, reduce the revenue available for vital public services and must represent value for money for the taxpayer. The Chancellor makes decisions on tax policy at fiscal events in the context of the overall public finances.

What consideration she has given to the VAT treatment of the proposed grassroots ticket levy on arena and stadium concerts.

VAT is a broad-based tax on consumption, and the standard rate applies to most goods and services, including event tickets. VAT is charged on the total price paid by the consumer, and any additional charges or levies applied prior to sale would generally form part of the taxable amount. Tax breaks, such as reduced VAT rates, reduce the revenue available for vital public services and must represent value for money for the taxpayer. The Chancellor makes decisions on tax policy at fiscal events in the context of the overall public finances.

Whether she will take steps to ensure that VAT collected on the grassroots ticket levy does not reduce funding intended for grassroots music venues.

VAT is a broad-based tax on consumption, and the standard rate applies to most goods and services, including event tickets. VAT is charged on the total price paid by the consumer, and any additional charges or levies applied prior to sale would generally form part of the taxable amount. Tax breaks, such as reduced VAT rates, reduce the revenue available for vital public services and must represent value for money for the taxpayer. The Chancellor makes decisions on tax policy at fiscal events in the context of the overall public finances.

With reference to the Loan Charge review, what steps her Department are taking to ensure consistency and fairness for individuals who have already settled their cases, compared to the concessions and reliefs now available to others who did not.

The purpose of the Independent Review of the Loan Charge was to bring the matter to a close for people who have not settled and paid their loan charge liabilities. The review identified affordability as a key barrier preventing those individuals from settling and made recommendations to remove this barrier, of which the Government has accepted all but one. To support those on the lowest incomes, the Government has gone further by providing an additional £5000 deduction for those in scope of the review, removing approximately 10,000 individuals from the charge entirely. This will come at a substantial Exchequer cost over the next five years. The Government will legislate to give HMRC the power to administer a new settlement scheme. There is no plan to alter liabilities or refund tax paid by individuals who have settled and fully paid their liabilities under the loan charge.

What assessment her Department has made of the potential impact of business rates on the level of investment by companies in (a) energy-efficient buildings and (b) renewable technologies.

The Government is determined to remove barriers to investment to support our businesses to succeed, our high streets to thrive, and our economy to grow. Business rates support is available for green technology to facilitate the decarbonisation of buildings. Eligible plant and machinery used in onsite renewable energy generation and storage, including onsite storage used at electric vehicle charging points, as well as rooftop solar panels, wind turbines, and battery storage, are exempt from business rates from 1 April 2022 until 31 March 2035. A 100 per cent relief for eligible low-carbon heat networks which have their own rates bill is also available.

What steps her Department is taking to support family-owned businesses with significant inheritance tax liabilities following company valuations.

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, fixing the public finances, and funding public services. 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. Where inheritance tax is due, those liable for a charge can pay any liability on the relevant assets over 10 annual instalments, interest-free.

When she plans to publish the Loan Charge Review.

The Government 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 will respond by Autumn Budget 2025.

Whether she plans to remove the Air Passenger Duty exemption for aircraft under 5.7 tonnes.

The government published a consultation on “Reform of Air Passenger Duty for private jets” in October 2024. This set out that, given the potential for increased compliance costs and instances where some smaller jets may already incur fuel duty (such as for private pleasure flying), the government proposes to maintain the existing maximum take-off weight (MTOW) threshold of 5.7 tonnes. The consultation closed on 22 January 2025 and the government will respond in due course. You can find the government consultation document here: https://www.gov.uk/government/consultations/reform-of-air-passenger-duty-for-private-jets

If she will increase Air Passenger Duty on private jet flights to (a) match and (b) exceed the rate applied to first-class scheduled flights.

Larger private jets incur a higher rate of Air Passenger Duty (APD), which is at least three times the standard rate that typically applies to passengers flying premium economy, business or first class. Passengers travelling on aircraft of over 20 tonnes that are equipped to carry fewer than 19 passengers must pay the higher rate of APD. This year, the higher rate has increased to £84 for domestic and short-haul flights, and to £647 and £673 for long-haul and ultra-long-haul flights respectively. Passengers flying in first class on scheduled commercial flights currently pay the standard rate which is £14 for domestic flights, £28 for short haul, £216 for long haul and £224 for ultra-long-haul flights. At Autumn Budget 2024, the Government announced that APD rates would be partially adjusted in 2026-27 to help compensate for recent years of below-inflation uprating. The higher rate for private jets will rise by a further 50 per cent on top of the general increase made to all APD rates. The Government also published a consultation on the extension of the higher rate to cover more private jets. At present, the higher rate only applies to larger private jets, and so many private jet passengers pay the same rates as commercial airline passengers. The consultation closed on 22 January, and the Government will respond in due course.

If she will review the VAT exemption applied to private jet travel.

It is right that the aviation sector, including private jet travel, contributes to public finances. Air Passenger Duty is the principal tax applied to private jet travel. The Government keeps all taxes under review.

What steps her Department is taking to ensure off-payroll working rules support (a) entrepreneurs and (b) small business growth.

The off-payroll working rules, also known as IR35, are designed to ensure that individuals working like employees, but through their own company, pay broadly the same income tax and National Insurance contributions (NICs) as those who are directly employed. They do not apply to the genuinely self-employed. On 27 February 2025, HMRC published updated analysis on the impacts of the 2021 off-payroll working rules reform in the private and voluntary sectors. It can be found here: Update to the impacts of the 2021 off-payroll working rules reform in the private and voluntary sectors - GOV.UK