§ Mr. Spenceasked the Chancellor of the Exchequer if he will define the meaning of gifts of small value as used by the Customs and Excise in relation to the exemption of unsolicited gifts from abroad to value added tax.
§ Mr. HigginsIt has not been the practice to give details of the concession under which unsolicited private gifts of small value are admitted free of Customs charges when sent by post to individuals in this country.
§ Mr. Straussasked the Chancellor of the Exchequer to what extent the value added tax input tax recoverable by museums and galleries will be related to the receipts from admission charges.
§ Mr. HigginsA museum or gallery should recover in full input tax paid on purchases of exhibits under the normal VAT arrangements if it is registered for the tax and charges for admission, provided that it does not, exceptionally, make supplies which are exempt from VAT. If charges are not made for admission such input tax cannot be recovered.
When exhibits are purchased under the special VAT scheme for secondhand works of art, there is no recoverable input tax. My noble Friend the Paymaster-General has announced, however, that the annual purchase grant-in-aid to national museums and galleries is to be topped-up as necessary to allow for this small effect.