43. Mr. W. T. Williamsasked the Chancellor of the Exchequer if he will take steps to see that VAT is not levied on gratuities paid by way of service charges on hotel and other similar accounts.
§ Mr. Grieveasked the Chancellor of the Exchequer if he will take steps to ensure that VAT is not levied on service charges in hotels and restaurants.
§ Mr. HigginsNo.
§ 45. Mr. Roseasked the Chancellor of the Exchequer whether he will exempt all television and other rentals existing at the time of the introduction from VAT.
§ Mr. HigginsNo. An exceptional transitional relief is already provided for television rentals.
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§ Mr. David Stoddartasked the Chancellor of the Exchequer if he will exempt from value added tax the telephone charges of private subscribers over the age of 60 years in the case of women and 65 years in the case of men.
§ Mr. HigginsNo. The Government have already agreed to an annual review of pensions which will take account of any increase in the cost of living due to VAT, and local authorities have permissive powers under the National Assistance Act 1948 and the Chronically Sick and Disabled Persons Act 1970 to assist with the cost of a telephone. The Supplementary Benefits Commission will consider claims for additional benefit to help towards the cost of a telephone.
§ Mr. Hordernasked the Chancellor of the Exchequer why VAT is chargeable on garages let by the New Towns Commission to its previous tenants who have bought their houses from the New Towns Commission, and not on garages let by the Commission to existing tenants.
§ Mr. HigginsThe grant of facilities for parking is chargeable with the standard rate of VAT. But where a garage is let by a landlord to a tenant as part of, or in conjunction with, the letting of domestic accommodation, it is covered by the general exemption from VAT in Schedule 5, Group 1 of the Finance Act 1972.