Asked by: Earl of Clancarty (Crossbench - Excepted Hereditary)
Question to the HM Treasury:
To ask His Majesty's Government, further to the answer by Lord Kamall on 20 October (HL Deb col 1168), whether there are ongoing discussions with the arts sector regarding a reduction in VAT on tickets; and what assessment they have made of the effect of such a measure on the sector.
Answered by Baroness Penn
VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services. Exceptions to the standard rate have always been limited by both legal and fiscal considerations.
VAT is the UK’s third largest tax forecast to raise £154 billion in 2022/23, helping to fund key spending priorities such as important public services, including the NHS and policing.
In addition, a request for a VAT cut should be viewed in the context of over £50 billion of requests for relief from VAT received since the EU referendum.
Currently, there are no plans to reduce the main rate of VAT on tickets for the art sector. However, the Government keeps all taxes under review as part of the tax policy making cycle and Budget process.
Asked by: Earl of Clancarty (Crossbench - Excepted Hereditary)
Question to the HM Treasury:
To ask Her Majesty's Government whether they have considered the introduction of an online sales tax for the purpose of levelling the playing field between high street and online retailers, with particular regard to the sale of books.
Answered by Viscount Younger of Leckie - Shadow Minister (Work and Pensions)
At Autumn Budget 2021, the Government announced that it will continue to explore the arguments for and against an Online Sales Tax (OST), the revenue from which would be used to provide business rates relief for in-store retail. The consultation will launch shortly.
No decisions on whether to proceed with an OST have yet been made. It is the Government’s intention to use the forthcoming consultation to consider in detail the issues surrounding proposals for an OST. This will include exploring the range of products, both physical and digital, which are sold online, including books.
Asked by: Earl of Clancarty (Crossbench - Excepted Hereditary)
Question to the HM Treasury:
To ask Her Majesty's Government what plans they have to provide 100 per cent business rate relief to the end of 2022/23 for all music venues, given the COVID-19 Plan B restrictions.
Answered by Lord Agnew of Oulton
Our support for the music industry through the £2 billion Culture Recovery Fund throughout the pandemic has been unwavering.
The Government has provided unprecedented business rates support, worth £16 billion, for the retail, hospitality, and leisure sectors since the start of the pandemic. Eligible retail, hospitality, and leisure properties paid no business rates for 15 months from 1 April 2020, and thanks to the current 66 per cent capped relief which took effect on 1 July 2021, over 90 per cent of eligible businesses will see a 75 per cent reduction in their business rates bill across this entire financial year to April 2022.
In recognition of longer-term challenges facing the high street, eligible retail, hospitality, and leisure businesses will receive a new temporary relief worth almost £1.7 billion in the year 2022-23.
Asked by: Earl of Clancarty (Crossbench - Excepted Hereditary)
Question to the HM Treasury:
To ask Her Majesty's Government whether they will (1) cancel, or (2) delay, the planned VAT rise on culture tickets, given the COVID-19 Plan B restrictions.
Answered by Lord Agnew of Oulton
The temporary reduced rate of VAT was introduced on 15 July 2020 to support the cash flow and viability of around 150,000 businesses and protect over 2.4 million jobs in the hospitality and tourism sectors. As announced at Spring Budget 2021, the Government extended the 5 per cent temporary reduced rate of VAT for the tourism and hospitality sectors until the end of September. On 1 October 2021, a new reduced rate of 12.5 per cent was introduced for these goods and services to help ease affected businesses back to the standard rate. This new rate will end on 31 March 2022.
All taxes are kept under review, but there are no plans to extend the 12.5 per cent reduced rate of VAT. This relief has cost over £8 billion. Applying a reduced rate of VAT for a longer period would impose additional pressure on the public finances, to which VAT makes a significant contribution.
Asked by: Earl of Clancarty (Crossbench - Excepted Hereditary)
Question to the HM Treasury:
To ask Her Majesty's Government what advice they are giving regarding carnets to those working in the fashion industry and who travel to Europe for work purposes, particularly in regard to clothing items; and what plans they have to make such advice more detailed.
Answered by Lord Agnew of Oulton
Now that the UK has left the EU Customs Union and Single Market, there are new customs processes that businesses and individuals need to follow when moving goods from Great Britain into the EU and vice versa. These new processes apply to all goods being moved on a temporary basis. HMRC are supporting traders to adjust to changes in their customs obligations with extensive engagement, communications campaigns, guidance, and educational resources, working in collaboration with other Government departments.
ATA Carnets are one option businesses and individuals can use to move goods temporarily between the UK and EU. An ATA Carnet simplifies customs formalities by allowing a single document to be used for clearing goods through customs in the countries that are part of the ATA Carnet system. This removes the requirement for individual declarations of goods and allows goods to be imported or exported without payment of duty.
Examples of goods that can be covered by ATA Carnets include commercial samples, clothing, and jewellery as well as professional equipment such as photography equipment, stage equipment and lighting. In the UK, ATA Carnets are administered by the London Chamber of Commerce and Industry. There is an issuing cost, and Carnet holders are required to provide a security which relates to the value of the goods being temporarily exported. More information can be found on their website.
As an alternative to an ATA Carnet, businesses and individuals may be able to use the EU’s Temporary Admission procedure, when moving goods temporarily into the EU. This allows goods to enter the EU on a temporary basis without payment of duties subject to relevant conditions being met. The management of EU import and export procedures is the responsibility of the customs authorities of the Member States, so it is important that businesses and individuals confirm any conditions or procedures that may apply, such as the time limit that goods may remain in the EU without the payment of duty. Further information can be found on the EU’s website.
Asked by: Earl of Clancarty (Crossbench - Excepted Hereditary)
Question to the HM Treasury:
To ask Her Majesty's Government what plans they have to help (1) reduce, or (2) remove, the costs of carnets for those working in the fashion industry who travel to Europe for work purposes.
Answered by Lord Agnew of Oulton
In the UK, ATA Carnets are administered by the London Chamber of Commerce and Industry. More information can be found on their website.As an alternative to an ATA carnet, businesses and individuals may be able to use the EU’s Temporary Admission procedure, when moving goods temporarily into the EU. The EU’s Temporary Admission procedure allows goods to enter the EU on a temporary basis without payment of duties subject to relevant conditions being met. Temporary Admission rules allow a customs declaration to be made orally or by conduct, by speaking to a customs official or driving through the green channel at port, in certain circumstances. This may be a cost-effective option for eligible businesses and individuals. The management of EU import and export procedures is the responsibility of the customs authorities of the Member States, so it is important that businesses and individuals confirm any conditions or procedures that may apply, such as the time limit that goods may remain in the EU without the payment of duty. Further information can be found on the EU’s website.
Asked by: Earl of Clancarty (Crossbench - Excepted Hereditary)
Question to the HM Treasury:
To ask Her Majesty's Government what is their definition of a Duplicate List with regard to the transportation of samples in the fashion industry.
Answered by Lord Agnew of Oulton
A Duplicate List is an alternative to using a full customs declaration when exporting goods temporarily or when claiming Returned Goods Relief (RGR). It involves the exporter preparing two copies of a list of all the goods being temporarily exported and presenting them to Customs, along with other customs paperwork. An extensive range of items can benefit from the Duplicate List procedure, including trade samples, although the Duplicate List can only be used for items in baggage accompanied by the traveller.
A copy of the list endorsed by Customs at export can be used as evidence of export to claim RGR when items are subsequently re-imported. Detail on the process and requirements for the Duplicate List can be found on Gov.uk.
RGR is a long-standing relief that allows eligible items to be reimported free from Customs duty and import VAT, if certain conditions are met. For example, they must not have been processed or repaired other than routine maintenance whilst outside the UK.
Asked by: Earl of Clancarty (Crossbench - Excepted Hereditary)
Question to the HM Treasury:
To ask Her Majesty's Government what discussions they are having with the EU to negotiate an exemption from ATA Carnets and CITES certification for temporary (1) import, and (2) export, between Great Britain and Northern Ireland.
Answered by Lord Agnew of Oulton
HMG published a Command Paper on 21 July setting out a proposed way forward on the Northern Ireland Protocol. This seeks to ensure that businesses and consumers can have normal access to goods from the rest of the UK and sets out a possible approach whereby movements that are purely between GB and NI do not require customs processes.
The Government is not having any discussions with the EU to negotiate an exemption from CITES certification or ATA Carnets for temporary import or export between Great Britain and Northern Ireland. CITES certification is required so as to continue to uphold the UK’s obligations under international agreements. ATA Carnets are not a requirement, they are an optional facilitation which allows goods to be imported temporarily without import duty being paid, and a single document to be used for multiple countries’ customs controls. The UK and approximately 80 countries around the world (including all EU member states) accept ATA Carnets and are signatories to the Customs Convention on the ATA Carnet and the Istanbul Convention on Temporary Admission which govern the use of Carnets.
Asked by: Earl of Clancarty (Crossbench - Excepted Hereditary)
Question to the HM Treasury:
To ask Her Majesty's Government whether there will be a replacement for the social security certificate A1/E101 for self-employed UK citizens working in EEA countries; and, if so, what it will be.
Answered by Lord Agnew of Oulton
The UK continues to participate in EU social security coordination rules during the transition period, and the self-employed should continue to apply to HMRC for A1/E101 certificates as normal.
Self-employed individuals going to work in the EU, EEA or Switzerland on or after 1 January 2021 who remain subject to UK social security legislation will be entitled to an A1/E101 certificate if they are covered by the Withdrawal Agreement with the EU, the Swiss Citizens’ Rights Agreement or the EEA EFTA Separation Agreement. For those individuals not covered by these agreements, the Government published a mandate on 27 February which sets out its intention to negotiate a future EU-wide agreement on social security coordination, including on which countries’ legislation is applicable.
On 26 October, HMRC published an Agent Update which sets out some of the changes for the self-employed going to work in or coming from the EU, the EEA or Switzerland from 1 January 2021.
Asked by: Earl of Clancarty (Crossbench - Excepted Hereditary)
Question to the HM Treasury:
To ask Her Majesty's Government what will be the threshold number of (1) musical instruments, and (2) other related equipment, at which the holder will be required to purchase an ATA carnet for temporary export and import.
Answered by Lord Agnew of Oulton
The current process for ATA Carnets with convention countries outside the EU will apply to relevant imports and exports with the EU at the end of the transition period. This means that from January 2021, ATA Carnets will become one of the options available to both businesses and individuals when temporarily moving goods between the UK and EU countries.
Use of an ATA Carnet is optional and is a commercial decision on whether it is the most cost-effective method in each specific circumstance. There is no specific threshold for the use of an ATA Carnet.
In the UK, ATA Carnets are administered by the London Chamber of Commerce and Industry (LCCI). Further information on obtaining and using an ATA Carnet can be found by contacting the LCCI.