§ Mr. Newtonasked the Chancellor of the Exchequer what amounts of input tax was disallowed in the year ended 31st March 1976 by reason of businesses being partially exempt for VAT purposes; and what proportion of that amount related to (a) retail shops principally supplying goods, and (b) businesses supplying only services.
§ Mr. Robert SheldonThe amount of input tax not deducted in the year ended 31st March 1976 because businesses were partially exempt for VAT purposes was approximately £20 million. Of that amount, some 5 per cent. related to retail shops principally supplying goods, and some 75 per cent. related to businesses supplying only services.