§ Mr. Michael Marshallasked the Chancellor of the Exchequer whether value added tax is applicable on rental payments by a United Kingdom resident to an absentee landlord living in the Isle of Man.
§ Dr. GilbertRental payments for occupying land or buildings are exempt from value added tax if the supply is covered by Schedule 5, Group 1 of the Finance Act 1972. Otherwise, value
22W1972 and 1973 in the United Kingdom, France, Germany and Sweden.
§ Dr. GilbertAn analysis of gross national product by industry of origin is not available. The information available relates to gross domestic product and is given below. Figures for 1973 are not yet available.
added tax is chargeable by a taxable person, wherever resident, on rent charged by him in respect of property situated in the United Kingdom and rented out in the course of his business. A taxable person is a person who is registered or required to be registered in the United Kingdom for value added tax purposes.
§ Mr. Nigel Lawsonasked the Chancellor of the Exchequer what is his latest estimate of the number of trades at present excluded from VAT by virtue of the general exemption for all businesses whose taxable turnover, including zero-rated items, does not exceed £5,000 per annum; and what would the number be if the exemption limit were raised to (a) £6,000 and (b) £7,000 per annum.
§ Dr. GilbertI assume the hon. Member is referring to the number of traders rather than of trades.
The number of persons not required to register for VAT because their taxable turnover is less than £5,000 per annum is not known. It is estimated that if the exemption limit were raised to £6,000 per annum or £7,000 per annum, the 23W number who could deregister might be 80,000 or 160,000 respectively.
§ Mr. Kilroy-Silkasked the Chancellor of the Exchequer whether kidney machines purchased by public subscription are subject to value added tax.
§ Dr. GilbertThe Value Added Tax (Aids for Disabled) Order 1974 zero rates from 1st June 1974 kidney machines—and many other essential aids for the disabled—when supplied to chronically sick or disabled persons for domestic use.
My right hon. Friend has also decided exceptionally to authorise an extra-statutory concession zero rating for VAT kidney machines for domestic use which have been purchased from funds raised by public subscription and which were supplied by a registered trader between Budget Day, when he announced his intention to relieve kidney machines from VAT, and 1st June.