§ Mr. Alfred Morrisasked the Chancellor of the Exchequer what was the total value added tax is paid by Motability on each of the cars in its range before and after the Budget of 12 June 1979.
§ Mr. Peter Rees[pursuant to his reply, 27 June 1980, c. 346–47]: On the basis of information provided by Motability Finance Ltd., the VAT payable by a disabled person before 18 June 1979 on the lease of a British Leyland Mini car for a 4-year period was £77.25 a year and of a Ford Fiesta for a 3-year period was £94 a year. On similar contracts after 16 July 1979 when the standard rate of VAT had been increased from 8 per cent. to 15 per cent. and the VAT (Cars) (Amendment) Order 1979, which allowed input tax to be deducted on the purchase of new cars by certain organisations, was in force, the amounts of VAT payable were £76 a year and £81.33 a year respectively. Two-thirds of the cars currently leased through Motability Finance Ltd. are of these two models.