HC Deb 04 June 1984 vol 61 c84W
Mr. Sheerman

asked the Chancellor of the Exchequer whether value-added tax is payable on the motor cycle part one test fee.

Mr. Hayhoe

Yes, with effect from 11 June 1984.

Mr. Hannam

asked the Chancellor of the Exchequer, under the Value Added Tax (Handicapped Persons) Order 1984, section 6, what arrangements will be made for assessing which items of work are exempt from value-added tax when the items listed under section 6 are carried out along with other alterations for disabled people.

Mr. Hayhoe

Items listed in article 6 are zero-rated. Other alterations are chargeable at the standard rate. Where a single inclusive price includes zero-rated and standard-rated items the supplier will have to split the price between the items in order to calculate how much tax is due (if he cannot do this, the entire supply is liable at the standard rate). There is no prescribed method of apportionment, but calculations must be fair and justifiable. Examples of methods of apportionment are given in appendix H to the VAT guide published by Customs and Excise and available from all local VAT offices.