Value Added Tax

HC Deb 07 April 1976 vol 909 cc221-2W

Mr. Newton

asked the Chancellor of the Exchequer if he is satisfied with the application of VAT to manned submersibles used in North Sea work.

Mr. Robert Sheldon

Yes. Submersibles are chargeable at the higher rate of VAT, but tax charged on submersibles purchased by a registered trader may normally be recovered as input tax.

Mr. Macfarlane

asked the Chancellor of the Exchequer what is the estimate of the yield of value added tax for the years 1974–75 and 1975–76 on (a) sports equipment (b) on entry to sports events and (c) on water sports equipment.

Mr. Robert Sheldon

Because persons registered for VAT are not required to

Year	Gross income (1)	Income after tax (2)	Income after tax revalued at February 1976 prices (3)	Gross income required to give income after tax as in column (3) in 1975–76 (4)	Gross Income equivalent to column (1) at February 1976 prices
		£	£	£	£	£
1961–62	…	2,000	1,645	4,832	6,712	5,875
		4,000	3,041	8,932	17,923	11,749
		6,000	4,921	12,604	37,870	17,624
		10,000	6,134	18,017	69,711	29,373
		15,000	7,356	21,606	90,823	44,059
1965–66	…	2,000	1,651	4,235	5,693	5,130
		4,000	3,009	7,718	13,628	10,260
		6,000	4,213	10,807	27,300	15,390
		10,000	5,896	15,124	52,694	25,651
		15,000	6,813	17,476	66,529	38,476
1970–71	…	2,000	1,659	3,400	4,408	4,098
		4,000	3,016	6,181	9,488	8,197
		6,000	4,225	8,658	16,827	12,295
		10,000	5,988	12,271	35,911	20,492
		15,000	7,092	14,533	49,217	30,739

The gross incomes shown do not include family allowances, but tax on family allowance and clawback for make returns of VAT charged on particular goods and services the information requested is not available. However, it is estimated that the yield from VAT on sports goods, toys and games is about £10 million a year and on admissions to sporting events about £3 million a year. There is no information available on which to estimate separately the tax on water sports equipment.