HC Deb 31 July 1972 vol 842 cc45-6W
Mr. Robert C. Brown

asked the Chancellor of the Exchequer if, in view of the fact that all youth hostels in European Economic Community countries are exempt from value added tax, he will seek to exempt from value added tax all such hostels in the United Kingdom.

Mr. Higgins

I would refer the hon. Member to what I said in the debate on this subject in Standing Committee E on 7th June.—[Cols. 417–28.]

Mr. Bishop

asked the Chancellor of the Exchequer whether it is Her Majesty's Government's policy to charge value added tax on the basis of income of individual branches of a national charity or on the basis of income of the organisation as a whole and if he will make a statement.

Mr. Higgins

The Government are looking into the possibility of treating branches of charities as separate entities for the purposes of value added tax, even if they are not formally separate from the parent body. Those charities which might benefit from a proposal of this nature have been invited to discuss the matter with the Customs and Excise before the date on which they would normally be due to register for VAT. The criterion for exemption from VAT of a small trader is, of course, taxable turnover, not income.

Mr. Ron Lewis

asked the Chancellor of the Exchequer if, when value added tax is introduced on 1st April, 1973, he will ensure that all hire-purchase agreements entered into before 1st April, 1973, will not be subject to increases in any way as a result of value added tax.

Mr. Higgins

I cannot comment on the terms of individual contracts. Sales by means of hire-purchase agreements entered into before 1st April, 1973, will not, however, be liable to value added tax.