§ Mr. Fauldsasked the Chancellor of the Exchequer whether a buyer's commission charged by a fine art auctioneer selling original oil paintings is subject to value added tax.
§ Mr. Robert SheldonA commission charged on a supply of services by an auctioneer to a buyer is chargeable with VAT. Auctioneers normally charge a commission to the seller, but some auctioneers also add a percentage to the hammer price, calling it a "buyer's premium" and treating it as part of the consideration for the goods rather than for the supply of auctioneer's services. Such a buyer's premium is then dealt with for VAT purposes in the same way as the goods themselves. If they are sold on behalf of an unregistered person, no VAT is chargeable, but if on behalf of a taxable person, the buyer's premium bears VAT in the same way as the goods.
§ Mr. Luceasked the Chancellor of the Exchequer what is the estimated annual loss of revenue if VAT exemption is given to the hand controls of disabled drivers' vehicles.
§ Mr. Robert SheldonThe revenue loss would be very small if relief could be restricted to this one item.
§ Mr. Luceasked the Chancellor of the Exchequer if he will list the number and type of aids to disabled people which are now exempt from VAT.
§ Mr. Robert SheldonAny medical or surgical appliance designed solely for the relief of a severe abnormality or severe injury is zero rated under Item 2 of Group 14 of Schedule 4 to the Finance Act 1972 when supplied to a chronically sick or disabled person for his domestic use and provided the supply is supported by a medical certificate.
§ Mr. Knoxasked the Chancellor of the Exchequer what the extra yield of VAT would be if the standard rate were raised to 9 per cent., 10 per cent., 11 per cent., 12 per cent., 15 per cent., 20 per cent., and 25 per cent., respectively.
§ Mr. Robert SheldonIt is estimated that the additional revenue in a full year562W From raising the standard rate of VAT would be:
Change in VAT Rate Additional Revenue (£ million) from 8 per cents to 9 per cent. 250 to 10 per cent. 500 to 11 per cent. 750 to 12 per cent. 1000 to 15 per cent. 1750 to 20 per cent. 3000 to 25 per cent. 4000 The larger increases in the rate of VAT would cause considerable changes in the economy and estimates for them are correspondingly uncertain.