HC Deb 28 July 1982 vol 28 c539W
Mr. Delwyn Williams

asked the Chancellor of the Exchequer what criteria are applied for deciding which items of confectionary shall be subject to value added tax.

Mr. Bruce-Gardyne

The range of confectionery items which is liable to value added tax at the standard rate is laid down in the law—excepted item 2 of group 1 of schedule 4 to the Finance Act 1972. This covers chocolates, sweets and similar confectionery—including drained, glace or crystallised fruits; and biscuits and other confectionery wholly or partly covered with chocolate or some product similar in taste and appearance. Drained cherries, cakes and candied peel are specifically excluded from the scope of the standard rating provision.

Mr. Michael Brown

asked the Chancellor of the Exchequer what would be the cost of zero rating building and construction work for value added tax purposes.

Mr. Bruce-Gardyne

VAT zero-rating already applies to most supplies in the course of the construction, alteration or demolition of buildings. The principal category of work supplied by the building industry which is not zero-rated is work of housing repair or maintenance. To afford relief to this kind of work could cost up to about £425 million in a full year.