HC Deb 21 March 1974 vol 870 cc1315-6
25. Sir D. Walker-Smith

asked the Chancellor of the Exchequer what representations he has made, or proposes to make, regarding the EEC proposals in regard to VAT on works of art.

Mr. Dell

Officials have already drawn the EEC Commission's attention to the differences between its proposals for the VAT treatment of works of art and the special tax treatment allowed in this country. No opportunity will be lost of explaining to other member States the advantages of the latter.

Mr. Robert Cooke

Will the hon. Gentleman bear in mind the serious damage to the international art market, now based on London, which would result if certain European practices were forced upon us here?

Mr. Dell

Yes, I shall bear that fact in mind.

Mrs. Renée Short

Will my hon. Friend bear in mind that this VAT is an undesirable Common Market practice which most of us in this country deplore? I hope my hon. Friend will give an undertaking that it will not be introduced on food, or increased on any of the other commodities that now bear it.

Mr. Dell

I do not think that my hon. Friend need have any doubt about that. The Question relates to VAT treatment of works of art, and in this country we have a special system of tax which we wish to preserve.

Mr. Higgins

Will the right hon. Gentleman clarify that remark? He says that his hon. Friend need not have any doubt about that. What precisely did that mean, in that context?

Mr. Dell

My hon. Friend was referring to the imposition of VAT on food.