HC Deb 17 June 1975 vol 893 cc404-5W
Mr. Banks

asked the Chancellor of the Exchequer what is the estimated revenue from the sales of burglar alarm equipment suitable for domestic use at the 25 per cent. rate of VAT.

Mr. Robert Sheldon,

pursuant to his reply [Official Report, 16th June 1975; Vol. 893, c. 346–7], gave the following information:

The amount is likely to be small.

Mr. Adam Butler

asked the Chancellor of the Exchequer what are the staff numbers, annual salary costs and total costs for Customs and Excise officers involved in visiting and checking the returns of companies and other bodies responsible for the collection and payment of VAT.

Mr. Robert Sheldon,

pursuant to his reply [Official Report, 16th June 1975: Vol. 892, c. 347], gave the following information:

I refer the hon. Member to the statement I made on 16th May pursuant to a reply to the hon. Member for South Angus (Mr. Welsh).—[Vol. 892, c. 191].

Mr. Higgins

asked the Chancellor of the Exchequer what criteria he employed in deciding that burglar alarms and ancillary equipment should be charged at the 25 per cent. rate of VAT.

Mr. Robert Sheldon,

pursuant to his reply [Official Report, 16th June 1975: Vol. 893, c. 347], gave the following information:

In deciding which goods and services should be chargeable at the 25 per cent. rate of VAT I tried as far as possible to impose the extra burden on those best able to bear it. It was, however, necessary to apply the higher rate to some goods used in most homes, including all but the most basic domestic electrical equipment.

I did not consider that there was a strong case for excluding burglar alarm equipment from the scope of the higher rate. I was, of course, aware that the first-time installation of alarm equipment as a fixture in the course of the construction or alteration of a building continues to be zero-rated under Group 8 of Schedule 4 to the Finance Act 1972: and that input tax on subsequent supplies of such equipment to a taxable person for the purpose of his business is deductible subject to the normal rules.