§ Mr. Adam Butlerasked the Chancellor of the Exchequer if he will make a statement regarding the treatment of secondhand goods under value added tax.
§ Mr. HigginsSecondhand goods will in general be subject to VAT, but in the case of works of art, antiques and scientific collections, and secondhand cars, Treasury orders have been laid for taxing on the dealer's margin rather than the full sale price. My right hon. Friend has also approved the preparation of similar schemes in respect of motor cycles and caravans—including motor caravans—other than those zero-rated under Group 11 Schedule 4 of the Finance Act 1972, and the necessary orders will be laid as soon as possible.