HC Deb 03 February 1976 vol 904 cc531-3W
Mr. Kenneth Clarke

asked the Chancellor of the Exchequer what revenue it is estimated will be produced by the 25 per cent. rate on VAT on caravans in its first full year of application; and how this compares with the revenue produced in previous years at the lower rate.

Mr. Robert Sheldon

The Budget estimates of additional revenue from the 25 per cent. rate of VAT on Groups 3—boats and aircraft—and 4—caravans—of the higher rate schedule was about £10 million in a full year. Rather less than half of this was expected to accrue from Group 4—caravans. The figure of net receipts of VAT from caravans in 1973–74 is not available.

Mr. Shersby

asked the Chancellor of the Exchequer why rope suitable for use on a boat, as defined in Group No. 3 of Notice No. 742 of the Commissioners of Customs and Excise, is rated at 25 per cent. VAT in chandlers but at the ordinary rate of 8 per cent. at all other retail outlets.

Mr. Robert Sheldon

Rope is chargeable at the 8 per cent. standard rate of VAT when it is sold by length, irrespective of the retail outlet.

Mr. Shersby

asked the Chancellor of the Exchequer how many new staff have been employed by the Commissioners of Customs and Excise as a direct result of the imposition of the 25 per cent. rate of VAT; and at what cost to public funds.

Mr. Robert Sheldon

I would refer the hon. Member to the answer I gave on 26th January to the hon. Member for Tynemouth (Mr. Trotter).

Mr. Shersby

asked the Chancellor of the Exchequer how much extra revenue was brought in by 25 per cent. VAT during the first eight months of its imposition.

Mr. Robert Sheldon

Because information required from traders is kept to an absolute minimum, I regret the information is not available.

Mr. Shersby

asked the Chancellor of the Exchequer why certain foreign gold coins such as the South African Kruger-rand, the American Double Eagle, the French 20 franc, the Swiss 20 franc and the German 20 mark are not subject to 25 per cent. VAT, whereas others such as the Austrian 100 corona and the Mexican 50 peso are subject to 25 per cent. VAT.

Mr. Robert Sheldon

I will let the hon. Member have a reply as soon as possible.

Mr. Shersby

asked the Chancellor of the Exchequer why gold sovereigns dated 1837 or earlier are subject to 25 per cent. VAT whereas those dated 1838 or later are not subject to VAT.

Mr. Robert Sheldon

I will let the hon. Member have a reply as soon as possible.

Mr. Shersby

asked the Chancellor of the Exchequer why gold half sovereigns minted in 1837 or earlier are not subject to 25 per cent. VAT whereas gold sovereigns minted in 1837 or earlier are subject to 25 per cent. VAT.

Mr. Robert Sheldon

I will let the hon. Member have a reply as soon as possible.