§ 28. Mr. Kelleyasked the Chancellor of the Exchequer if he will arrange for snuff purchased by retirement pensioners to be relieved of value added tax.
§ Mr. HigginsNo.
§ Mr. Fauldsasked the Chancellor of the Exchequer when he expects to publish 156W the procedures for accounting for VAT in cases of joint ownership for works of art and antiques; and how such transactions should be dealt with in the intervening period.
§ Mr. HigginsThe number of such cases appears to be very small indeed. Each will for the present be considered individually. Any registered person undertaking or contemplating undertaking such transactions should consult his local Customs and Excise VAT office.
§ Mr. Loveridgeasked the Chancellor of the Exchequer if service charges which are made by hotels and restaurants and added to bills, and then distributed to staff as tips, are liable to VAT.
§ Mr. HigginsYes. The value added tax is chargeable on the full value of the supply of taxable goods and services to the customer.
§ Mr. Joel Barnettasked the Chancellor of the Exchequer how many firms had registered for VAT at 1st April 1973; and what is his latest estimate of the number of firms that should have registered.
§ Mr. HigginsAt 1st April 1973 more than 1 million traders were on the VAT computer file. Registration numbers are issued to traders in advance of computer filing, and it is estimated that approximately 1,100,000 such numbers had been allocated. Checks by local VAT offices and other sources indicate that there was no serious shortfall in registration by traders liable to do so. I would also refer the hon. Member to my reply of 2nd April.—[Vol. 854, c. 19.]
§ Mr. Joel Barnettasked the Chancellor of the Exchequer what further action he proposes to take to ensure the registration of firms not yet registered for VAT.
§ Mr. HigginsCustoms and Excise will as part of its normal management of VAT check for firms failing to register. The responsibility for making application for registration, however, rests with the firms concerned which will render themselves liable to penalties and to the payment of any arrears of tax if they fail to apply.
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Mr. Joel Baraettasked the Chancellor of the Exchequer if he will give his estimate of the amount of VAT to be collected in 1973–74, respectively, for food and services.
§ Mr. HigginsFood will be zero-rated. The receipt of revenue from catering in 1973–74 is expected to be of the order of £120 million. No separate estimate has been made of the amount to be collected in the year from services.
§ Mr. Joel Barnettasked the Chancellor of the Exchequer if he will make a statement on the way zero rating for VAT will affect all genuine children's clothing, with particular reference to Customs and Excise Notice 714.
§ Mr. HigginsI would refer the hon. Member to the remarks on the zero rating of young children's clothing and footwear which I made during the debate on the Budget Resolutions on 7th March.—[Vol. 852, c. 545–6.]
§ Mr. Gryllsasked the Chancellor of the Exchequer whether Service messes are liable to VAT on sales and subscriptions.
§ Mr. HigginsThe subject is currently being reviewed.
§ Mr. Hicksasked the Chancellor of the Exchequer if he will clarify the position in respect of the liability to VAT of the cost of improvements to private properties carried out with the assistance of house improvement grants, both standard and discretionary; and if he will make a statement.
§ Mr. HigginsThe liability to VAT of work carried out with the assistance of house improvement grants depends on the nature of the work. In general, repairs and maintenance are chargeable with the standard rate of VAT while the construction or alteration of a building is zero rated.