§ Mr. Holtasked the Chancellor of the Exchequer how many new firms registered to pay value added tax in Cleveland in each of the past five years; and how many of these firms have survived for two years or more.
§ Mr. HayhoeI regret that records are not maintained in this form. Only the total number of new registrations for VAT is centrally recorded, no distinction being made between new and existing firms who register. Also, the statistics of persons deregistering from VAT makes no distinction between firms going out of business and those deregistering for other reasons. The available information, for the past five years, for those traders whose local VAT office is situated in Cleveland, is as follows:
New registrations Deregistrations 1980 1,986 1,801 1981 1,666 1,304 1982 1,965 1,780 1983 2,122 1,792 1984 2,029 1,748
§ Mr. Cohenasked the Chancellor of the Exchequer whether Her Majesty's Government propose to comply with the draft 18th Council directive of the Commission of the European Communities, document, reference COM(84) 649 final, of 30 November 1984, in respect of requiring Britain to impose value added tax by 1 January 1986 on (a) supplies linked to sport or physical education made by non-profit-making organisations, (b) cultural supplies made by bodies governed by public law, (c) supply of transport by ambulance for sick or injured persons, (d) supplies by intermediaries relating to transactions in transferable securities and (e) management of investment funds, respectively; and if he will make a statement.
§ Mr. HayhoeThis draft directive has yet to be discussed in the Council of Ministers and unanimous agreement would be required for it or any amended version to be adopted. In its present form it would not have the effect of requiring the items mentioned to be taxed. Under the sixth VAT directive they are exempt but there is a derogation allowing member states to continue to tax them as a transitional measure. The new proposals would end that derogation. An explanatory memorandum on the draft directive will shortly be deposited in the Library in the normal way.
§ Mr. Cohenasked the Chancellor of the Exchequer if he will make a statement on the proposal in the draft 18th Council directive of the Commission of the European Communities, document reference COM(84) 649 final, of 30 November 1984, whereby the European Economic Community will require Britain to impose value added tax 522W by 1 January 1988 on (a) supplies by undertakers and cremation services, (b) transactions carried out by hospitals and (c) passenger transport.
§ Mr. HayhoeThis draft directive does not contain proposals to apply value added tax to these items. An explanatory memorandum will shortly be deposited in the Library in the normal way.
§ Mr. McTaggartasked the Chancellor of the Exchequer if he will take the necessary steps to ensure the zero rating of value added tax for the supply to eligible bodies of computer systems, purchased with funds provided by a charity or from voluntary donations, and used in medical research, treatment or diagnosis; and if he will make a statement.
§ Mr. HayhoeI have nothing to add to what I told the hon. Member in my letter to him of 21 January.