§ Mr. Sheermanasked the Chancellor of the Exchequer what would be the cost in lost revenue of raising value added tax exemption limits to (a) £25,000, (b) £30,000, (c) £35,000, (d) £40,000, (e) £50,000, (f) £55,000 and (g) £60,000.
§ Mr. BrookeAny estimate of the cost depends crucially on the number of traders that would deregister if the VAT registration limit were raised. This cannot be predicted with any certainty and, in the circumstances, the best estimates of the revenue that would be lost if the limit were raised to £30,000 or £50,000 (the only levels for which data are available) are between £25 million and £75 million and between £100 million and £200 million per year respectively.