§ Mr. Michael Lathamasked the Chancellor of the Exchequer whether he will specify the reasons why he is not prepared to raise the £5,000 exemption limit for the purposes of VAT; and what the limit would be at the latest convenient date if it had been raised to keep pace with inflation.
§ Mr. Robert SheldonI am not satisfied that it would be desirable at present to make changes in the legal provisions relating to the VAT registration exemption limit; but I keep this question under continuous review. The exemption limit would need to be raised to £7,500 taxable turnover a year to keep in line with the general level of prices.