HC Deb 22 April 1975 vol 890 cc253-4W
Mr. Pardoe

asked the Chancellor of the Exchequer if he will make a statement to clarify the application of the 25 per cent. VAT rate on antiques.

Dr. Gilbert

Subject to the approval by Parliament of Budget Resolution No. 16, the 25 per cent. rate of VAT is to apply to both new and used goods, including antiques, of the kinds specified in the resolution. Accordingly, from 1st May 1975 the higher rate is to be chargeable on sales in the course of a business of, for example, antique jewellery, silver and jade; most silver plate will remain chargeable at the standard rate. Exports will, of course, continue to be zero-rated and sales by private individuals not in the course of a business will remain out-side the scope of the tax.

The existing special second-hand scheme for antiques will continue, and higher-rated antiques sold under the scheme are to be chargeable at the 25 per cent. rate on the basis of the seller's margin instead of on the full selling price.

The higher rate is also to apply to the valuation of, and various other services in respect of, higher-rated antiques, but it will not apply to the auctioneering or brokerage of such goods.

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