§ Mr. Nicholas BrownTo ask the Chancellor of the Exchequer what was the total and average investment income and earned income in 1992–93 of(a) the top 1 per cent., (b) the top 5 per cent., (c) the top 10 per cent., (d) the bottom 70 per cent., (e) the bottom 50 per cent., (f) the bottom 10 per cent. of taxpayers and (g) all taxpayers.
§ Mr. DorrellLatest estimates are given in the table:
§ Sir John CopeThe actual yield would depend on the effects on consumers behaviour. Without allowing for such behavioural changes, the Treasury publication, 'Tax Ready Reckoner and Tax Reliefs' shows the cost of not standard rating currently zero rated items. The figures for books, newspapers and magazines has been apportioned into each category using shares of consumers' expenditure. From these figures it is possible to derive the following table in £ million for 1994–95.
transport fares are set out in the Official Report, 24 November 1993, columns 66-70. VAT rates on food in restaurants, rents and community centres according to the latest information available, are set out in the tables.
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(b) VAT on food in restaurants in the EC Country Rate per cent. Belgium 19.5 Denmark 25 France 18.61 Germany 8 Greece 18 (13)2 Ireland 12.5 Italy 93 Luxembourg 3 Netherlands 17.5 Portugal 16 (12)4 Spain 6, 155 United Kingdom 17.5 1 The following rates apply generally in Corsica: 0.9 per cent., 2.1 per cent., 8 per cent. and 13 per cent. 2 The rate in brackets applies in the departments of Lesbos, Chios, the Dodecanese and the Cyclades, and in the islands of Thasos, the Northern Sporades, Samothrace and Skyros. 3 Excluding the supply of food in luxury premises including luxury hotels. 4 The rate in brackets apply in the autonomous regions of Madeira and the Azores Archipelagoes. 5 The standard rate applies to the supply of food in luxury hotels. (g) VAT on rents in the EC
The letting of immovable property is exempt from VAT in every member state, although some member states operate an option to tax in certain circumstances.
(j) VAT on community centres in the EC
Leasing of such buildings is exempt in all member states. For purchase (including construction) in other member states the rates in the table on house purchase apply.
§ Mr. Nicholas WintertonTo ask the Chancellor of the Exchequer (1) whether the issue of value added tax on imported works of art is likely to be considered at the December meeting of ECOFIN; and what views he will be expressing on this subject at that meeting;
(2) if he will make a statement of his policy on the future of imported works of art in connection with value added tax;
(3) what assessment he has made of the possible impact of the imposition of value added tax on imported works of art upon London's world position as a centre for the trade in art objects; and if he will make a statement.
§ Sir John CopeThe subject of VAT on second hand goods, including works of art, antiques and collectors items, was discussed again at ECOFIN today and agreement was reached on the Seventh VAT Directive. Under this agreement margin schemes will be extended to all second hand goods. No VAT other than that in the member state of purchase will be payable when works of art, antiques and collectors items are moved from one member state to another.
Imports of such items into the European Union from third countries will be charged VAT at not less than 5 per cent. except in the United Kingdom where imports of pre-1973 works of art will be charged at an effective rate of 2½ per cent. until mid-1999. Items imported temporarily for resale and subsequent export outside the EU will not be chargeable with VAT. The Commission will review the effects of the new arrangements in 1998 and report to the Council.
My right hon. and learned Friend the Chancellor of the Exchequer and I have had full consultations with the art trade on these matters throughout the very long period they have been under discussion. The agreement avoids potentially damaging legal actions and means that the United Kingdom art market will have the most favourable VAT regime in the EU and will be able to maintain its pre-eminence in the world.