HL Deb 03 May 1972 vol 330 cc741-2
BARONESS LEE OF ASHERIDGE

My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

The Question was as follows:

To ask Her Majesty's Government whether they will consider exempting the work of living painters and sculptors from the payment of value-added tax.

EARL JELLICOE

My Lords, Her Majesty's Government will give careful consideration to the representations which have been made about the application of value-added tax to works of art generally. But I should like to remind your Lordships that V.A.T. is by its nature a wide-ranging tax and my right honourable friend the Chancellor of the Exchequer has indicated the need to keep exceptions to a minimum. The noble Baroness will of course be aware that it is proposed that there should be a general exemption from V.A.T. for suppliers with a turnover in taxable goods and services not exceeding £5,000 per annum.

BARONESS LEE OF ASHERIDGE

My Lords, I should like to thank the noble Earl for his reply. I hope that in consultation with his Treasury colleagues and others he will understand the importance of exempting living artists and sculptors from this tax.

EARL JELLICOE

My Lords, it is no secret that there are Amendments down for early discussion at the Committee stage on the Finance Bill in another place which bear on the Question of the noble Baroness. I will bring to the attention of my right honourable friend and his colleagues the comments which the noble Baroness has made.

LORD STRABOLGI

My Lords, are the Government aware that at the present time the foreign buyer will get a 10 per cent. advantage over the British buyer? How do they intend to stop the flow of works abroad if the export of our national artistic heritage will be subsidised in this way?

EARL JELLICOE

My Lords, I am not quite certain that the noble Lord's supplementary question bears directly on the point which the noble Baroness has made. It bears more on the question of auctions and auctioneers, rather than on the work of living painters and sculptors. I do not feel that it is appropriate for me to dilate at any great length on this matter when it is due to come up for consideration at the Committee stage in another place.