§ Mr. Ashdown
asked the Chancellor of the Exchequer whether in the light of the House of Lords ruling on 24 November in the case of Customs v. Viva Gas Appliances, he will now clarify the situation regarding zero-rating value added tax for construction alteration work.
§ Mr. Hayhoe
The Commissioners of Customs and Excise have been considering the implications of the Viva judgment. Their initial view is that the guidance contained in their public notices on the liability to VAT of construction work will need revising only to a very limited extent. They will, however, be consulting the construction industry trade associations before announcing any changes in that guidance.