§ Mr. Adleyasked the Chancellor of the Exchequer whether he proposes to take steps to ensure that purchasers of equipment, fixtures and fittings used on and in boats do not switch their purchases to retail outlets other than recognised suppliers of equipment for boats, in order to escape the 25 per cent. VAT which he proposes to levy on boats and ancillary equipment.
§ Dr. GilbertParts of, and accessories to, boats falling within Group 3 of the VAT higher rate schedule are chargeable at the 25 per cent. rate when supplied
Current rate and effective date Previous rates and effective date Belgium … … 25 per cent. — 1st January 1971 Denmark … … 15 per cent. 12½ per cent. 10 per cent. 29th June 1970 1st April 1968 3rd July 1967 France … … 20 per cent. 23 per cent. 19 per cent.* 16⅔ per cent.* 1st January 1973 1st January 1970 1st December 1968 1st January 1968 Germany … … 11 per cent. 10 per cent. 1st July 1968 1st January 1968 Ireland … … 19.5 per cent. 16.37 per cent. 3rd September 1973 1st November 1972 Italy … … 30 per cent.† Exempt† 6th July 1974 1st January 1973 Luxembourg … 10 per cent. 8 per cent. 1st January 1971 1st January 1970 Netherlands … 16 per cent. 14 per cent. 12 per cent. 1st January 1973 1st January 1971 1st January 1969 * These rates were expressed as a percentage of the VAT inclusive price. † This applies to large power boats only. Other boats have been subject to a rate of 12 per cent since 1st January 1973.
§ Mr. Evelyn Kingasked the Chancellor of the Exchequer if, in the interests of safety, he will consider removing the increased rate of VAT upon dinghies.
§ Dr. Gilbert:No. It would be impracticable to distinguish for the purposes of
390Wthrough any outlet. There is, therefore, no tax advantage in purchasing such goods from retail outlets other than recognised suppliers of equipment for boats.
§ Mr. Adleyasked the Chancellor of the Exchequer how he defines a boat trailer in accordance with the reference thereto on page 86, line 13, of the Finance (No. 2) Bill.
§ Dr. GilbertThe higher rate of VAT applies to those trailers which are accessories to boats falling within Item 1 or Item 2 of Group 3 of Schedule 7 to the Finance (No. 2) Bill.
If the hon. Member has any particular difficulty in mind, perhaps he will write to me.
§ Mr. Adleyasked the Chancellor of the Exchequer if he will list the rate of VAT on boats, in the eight other EEC countries, for each of the last 10 years, where appropriate.
§ Dr. GilbertThe table below shows the rate of VAT applied to boats at present in other member States of the EEC and changes in those rates over the past 10 years, or since the introduction of the tax in the country concerned:
VAT between dinghies according to the use to which they are to be put. Life rafts which comply with the Merchant Shipping (Life Saving Appliances) Rules 1965 are excluded from the 25 per cent. rate.
391W
§ Mr. Evelyn Kingasked the Chancellor of the Exchequer what information he has as to the effect upon the sale of boats in Europe which followed the imposition of VAT upon them there.
§ Dr. GilbertNone.
§ Mr. Evelyn Kingasked the Chancellor of the Exchequer what estimate he has of the revenue he is likely to receive by way of increased VAT upon repairs to small boats designed to make them more seaworthy.
§ Dr. GilbertI regret that this information is not available.
§ Mr. Evelyn Kingasked the Chancellor of the Exchequer what estimate he has as to the amount of revenue he will receive in respect of the increase in VAT upon safety equipment used in boats.
§ Dr. GilbertI regret that this information is not available, but I would refer the hon. Member to the answer I gave to the hon. Member for Dumfries (Mr. Monro) on 30th April 1975.—[Vol. 891, c.167.]