§ Mr. Adam Butlerasked the Chancellor of the Exchequer what is the reason for value added tax being chargeable and non-recoverable on materials bought by a builder for the purpose of building a house for his own use; and if he will take steps to end this situation.
§ Mr. HigginsThe zero rate of VAT for materials used for new construction work is limited to supplies made in connection with supplies of construction services in the course of a business. No tax charged on such materials is recoverable as input tax unless the purchaser is registered for VAT and purchased the materials for the purpose of his business.