§ Mr. ChurchillTo ask the Chancellor of the Exchequer in which year and on whose authority value added tax was first imposed on the maintenance of United States war graves in the United Kingdom; when and on whose authority war graves in the United Kingdom and European Economic Community nations were exempted from such value added tax charges; and when he proposes taking action to ensure that the war graves of our American and Commonwealth allies are not less favourably treated than those of our former enemies.
§ Mr. Lilley[holding answer 6 July 1989]: In 1985 Her Majesty's Customs and Excise ruled that suplies in the 662W United Kingdom of goods and services for the American Battle Monuments Commission were chargeable with VAT.
There was an exchange of notes between the Governments of the United Kingdom and the United States of America in 1952 regarding relief from taxation of United States Government expenditures in the United Kingdom. Information is not presently available on the position in other countries of the European Communities.
Her Majesty's Customs and Excise is looking into the background to the ruling in 1985 to see whether it was correct then and is appropriate now.