Mr. Edward Taylorasked the Chancellor of the Exchequer what taxes and duties to central and local government are payable on the sale of a house at £5,000 in the United Kingdom and in each of the countries of the European Economic Community.
§ Mr. Patrick JenkinApart from taxes on income and capital gains, which depend on the circumstances of the vendor, no taxes are payable on the sale of a house for £5,000 in the United Kingdom. In the countries of the European Economic Community, the general pattern is that value-added tax is charged on the sale of new construction and registration duties on the sale of old property. The precise burden of V.A.T. on the sale of a new house would depend on a number of factors. I understand that the registration or similar duty on the sale of a £5,000 house is: in Belgium, £300; in France, £240; in Germany, £350; in Holland, £250; in Italy, £375 and in Luxembourg, £250. Except in Germany, there are also small amounts of stamp duty payable depending on the length of the relevant documents. I am not aware of any current plans for harmonising the duties on transfers of real property.