HC Deb 09 July 1992 vol 211 c290W
24. Mr. Loyden

To ask the Chancellor of the Exchequer what plans he has to apply VAT to second-hand goods.

Sir John Cope

The sixth VAT directive requires tax to be charged on the full selling price of all goods and services unless otherwise relieved. Although there is no general relief for second-hand goods, there are special schemes for certain of these goods and works of art, antiques and collectors' items under which tax is charged only on the seller's margin.

The draft EC seventh VAT directive, which requires unanimity for its adoption, proposes a harmonised scheme which will in general extend this relief to other second-hand goods. The Government have taken the representations that they have received fully into account in establishing their negotiating position.