HC Deb 24 May 1973 vol 857 cc109-10W
29. Mr. Nicholas Edwards

asked the Chancellor of the Exchequer what recent representations he has received about the application of VAT to building construction work undertaken by private individuals; and what replies he has sent.

Mr. Higgins

My right hon. Friend has received a number of representations about this. Replies have been sent explaining that it is not practicable to provide relief from VAT for purchases of building materials by private individuals. Supplies of services to a private individual in the course of the construction of a house by a builder or by a specialist contractor such as a plumber or electrician are zero rated, together with any supplies of materials made in connection with the supply of services.

Mr. Faulds

asked the Chancellor of the Exchequer why it was decided not to reply to the letters from the Standing Commission on Museums and Galleries of 21st December 1972, 30th January, 16th February, 5th March and 4th April 1973 to Her Majesty's Customs and Excise regarding value added tax on purchases by museums and galleries.

Mr. Higgins

I have written to the Chairman of the Standing Commission on Museums and Galleries.

Mr. Faulds

asked the Chancellor of the Exchequer what percentage of the price the value added tax will be when a museum buys an object from a dealer under the special scheme contained in Her Majesty's Customs and Excise Notice No. 712.

Mr. Higgins

Since the essence of the special scheme is that value added tax is chargeable only on the dealer's margin, it is not possible to state it as an invariable percentage of the purchase price.

Mr. Faulds

asked the Chancellor of the Exchequer whether the amount of value added tax levied under the special scheme contained in Her Majesty's Customs and Excise Notice No. 712 on an object bought from a dealer can be disclosed so that the museum is in a position to make out a case to the Government for an increase in its acquisitions grant.

Mr. Higgins

I would refer the hon. Member to the reply I gave him on 2nd April.