§ Mr. Mayhewasked the Chancellor of the Exchequer whether he is satisfied with the consistency of the legislation applying VAT to work done by people on their own homes on a do-it-yourself basis.
§ Mr. Robert SheldonYes, but if the hon. and learned Member has a particular difficulty in mind I should be glad to consider it.
§ Mr. Ridleyasked the Chancellor of the Exchequer what was the yield of value added tax in 1973–74, and what would be the yield in 1977–78 if the rate of value added tax were 10 per cent. and the rate band were also charged at 10 per cent.
§ Mr. Robert SheldonNet receipts of VAT in 1973–74 were £1,470.7 million. Because VAT is collected in arrear and relief was given on duty and purchase tax paid on goods held in stock at the introduction of VAT, receipts in 1973–74 were less than for a full year.
It is estimated that if the standard and higher rates of VAT had been 10 per cent. the yield in the full year 1976–77 would have been £4,200 million. It is not the practice to give estimates for future years before the relevant Budget.