HC Deb 01 May 1973 vol 855 cc286-7W
Mr. Joel Barnett

asked the Chancellor of the Exchequer if he will make a statement on the definition of the words "young child" given in Customs and Excise Value Added Tax notice No. 78A, with particular reference to the criterion used for deciding what is "not suitable for older persons".

Mr. Higgins

Customs and Excise Notice No. 78A refers to purchase tax, not VAT. However, as with the relief from purchase tax, a "young child" for the purpose of the VAT relief has been taken to be a child up to the 14th birthday.

Clothing may be considered suitable for older persons, and hence chargeable with VAT, if the type of retail outlet through which it is sold indicates that it is intended for wear by such persons, if it is got up for sale to such persons, or if by its measurements it is suitable for wear by older persons of average size.

Mr. Sheldon

asked the Chancellor of the Exchequer what estimate he has made

of the number of claims for purchase tax and revenue duty rebates by VAT registered traders.

Mr. Higgins

No such estimate has been made, as there is no obligation on any trader to make a claim.

Mr. Meacher

asked the Chancellor of the Exchequer why he did not zero rate child-minding services for VAT purposes; and if he will reconsider his decision in the light of the widespread abuses revealed by the recent Advisory Centre for Education report regarding illegal child-minding practices.

Mr. Higgins

Customs and Excise Public Notice No. 701 shows the provision of care in day nurseries and play groups approved under the Nurseries and Child-Minders Regulation Act 1948 to be exempted from VAT. The suggestion reported in the Press that registered child minders are at a fiscal disadvantage under VAT compared with other child minders is misconceived.