HC Deb 02 July 1999 vol 334 cc287-8W
Mr. Maude

To ask the Chancellor of the Exchequer (1) pursuant to his answer of 8 June 1999,Official Report, column 289, regarding discussions with European institutions about VAT on financial services, what his policy is on the application of VAT to financial services; and what position HM Customs and Excise has taken in the consultations with the European Commission on the feasibility of applying VAT to financial services; [86962]

(2) pursuant to his answer of 8 June 1999, Official Report, column 289, regarding discussions with European institutions about VAT on financial services, if he will place a copy of the consultants' report in the Library; [86963]

(3) pursuant to his answer of 8 June 1999, Official Report, column 289, regarding discussions with European institutions about VAT on financial services, if he will list the positions held by the Customs officials who have attended the seminars and the conference organised by the European Commission; where and when the seminars and conference took place; what costs were incurred by the Treasury in attending the seminars and conference; and if he will make a statement. [86964]

Ms Hewitt

[holding answer 17 June 1999]: The European Commission has been studying the feasibility of applying VAT to financial services, including insurance, since 1993. No proposal has been made. The Government's position is clear: they will not accept any measures which damage British business, jobs and competitiveness. Customs' position in discussions with Commission officials have been consistent with this policy.

Mr. Maude

To ask the Chancellor of the Exchequer (1) if he will estimate the total annual revenue that would be collected if VAT were charged at(a) 17.5 per cent. and (b) 5 per cent. on the making of arrangements for, or the underwriting of, any security or secondary security; [89595]

(2) if he will estimate the total annual revenue that would be collected if VAT were charged at (a) 17.5 per cent. and (b) 5 per cent. on the operation of any current, deposit or savings account as defined in subsection 8, Group 5, Schedule 9 (Exemptions) of VAT Notice 701/39 part 2. [89594]

Dawn Primarolo

It is not possible to provide the requested estimates due to insufficient data being available on these specific financial activities.

Mr. Maude

To ask the Chancellor of the Exchequer if he will estimate the total annual revenue that would be collected if VAT were charged at(a) 17.5 per cent. and (b) 5 per cent. on the making of any arrangements for (i) the issue, transfer or receipt of, or any dealing with, money, any security for money or any note or order for the payment of money, (ii) the making of any advance or the granting of any credit, (iii) the provision of the facility of instalment credit finance in a hire-purchase, conditional sale or credit sale agreement for which facility a separate charge is made and disclosed to the recipient of the supply of goods and (iv) the provision of administrative arrangements and documentation and the transfer of the title to the goods in connection with the provision of the facility of instalment credit finance in a hire-purchase, conditional sale or credit sale agreement for which facility a separate charge is made and disclosed to the recipient of the supply of goods if the total consideration therefore is specified in the agreement and does not exceed £10. [89596]

Dawn Primarolo

Insufficient data are available to provide the estimates sought, as I explained to the right hon. Gentleman in my written answer of 30 June 1999,Official Report, columns 226–27.

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