HC Deb 16 February 1976 vol 905 cc514-7W
Mr. Brotherton

asked the Chancellor of the Exchequer (1) if he will apportion debt interest on the National Debt on the basis of population for Scotland, Wales, England and Northern Ireland;

(2) if he will apportion debt interest on the National Debt on the basis of gross domestic product for Scotland, Wales, England and Northern Ireland.

(3) if he will apportion the National Debt on the basis of gross domestic product for Scotland, Wales, England and Northern Ireland;

(4) if he will apportion National Debt on the basis of population for Scotland, Wales, England and Northern Ireland.

Mr. Joel Barnett

The information requested in these four Questions is shown in the table below, on the assumption that they are intended to refer to total public sector debt to the private sector and abroad; the National Debt excludes the debt of local authorities and public corporations, but includes large amounts of Government debt held by public bodies.

United Kingdom firms abroad can be taken into account in calculating United Kingdom VAT liability or entitlement to refund of VAT; and whether the United Kingdom practice in this respect is in line with that in the other eight countries of the EEC.

Mr. Robert Sheldon

There are no provisions within our VAT law which enable United Kingdom firms to deduct VAT charged in other countries from their liability to United Kingdom VAT. Proposals for the harmonisation of VAT in this and other respects are at present under discussion.

Mr. Trotter

asked the Chancellor of the Exchequer when the Customs and Excise ceased to issue duplicate form VAT 100 on request to traders; whether the paper shortage which led to the cessation still exists; what is the estimated cost of making the forms again available; and whether he will instruct the Customs and Excise to do it again.

Mr. Robert Sheldon

(a) Customs and Excise ceased to issue duplicate forms VAT 100 on request to traders for record purposes in March 1974, but continue to issue the forms when it is reported to them that the originals have been lost or spoiled.

(b) Whilst at the moment paper is available, an underlying paper shortage continues to exist but its effects are being masked by the trade recession.

(c) The estimated cost of dispatch of a duplicate form for record purposes would be about 8.5p, but there is no information on the probable total cost that would be incurred as this would depend upon the demand which could be considerable. The hon. Member will appreciate the need for economy in Government expenditure at the present time; and

(d) No change of practice is contemplated.

Mr. Hannam

asked the Chancellor of the Exchequer if he will list all the categories of communication equipment for the deaf and hard of hearing which he has zero rated for the purposes of VAT.

Mr. Robert Sheldon

Hearing aids supplied through the National Health Service involve no charge of VAT to the patient. Hearing aids supplied outside the National Health Service are exempt when supplied in connection with medical treatment. Other medical or surgical appliances designed solely for the relief of deafness are zero rated when supplied for the domestic use of the patient.

Mr. Cormack

asked the Chancellor of the Exchequer what is his estimate of the total VAT receipts during the last financial year from the following sources: (a) repairs to historic buildings, (b) admission charges to theatres, (c) admission charges to sports grounds and (d) admission charges to places of entertainment not specified in (b) and (c).

Mr. Robert Sheldon

The information is not available in the form asked for. I hope the following will be helpful to the hon. Member:

Estimates of VAT receipts in 1974–75
(£ million)
Admissions to theatres and musical concerts. 6
Admissions to cinemas 6
Admissions to professional and amateur sports. 3
Other entertainment and recreational services. 10
Total 25

I am afraid the information is not available to provide an estimate of VAT revenue from repairs to historic buildings.

Mr. Robert Cooke

asked the Chancellor of the Exchequer whether he will consider making a grant of up to £26,250 in respect of VAT levied on any silver copies of the Donatello relief which are sold on behalf of the Victoria and Albert Museum.

Mr. Joel Barnett

No. Such a grant would be the equivalent of remitting VAT on the sales. Sales of this kind to the public are no different from sales by charities which are subject to VAT.

Mr. Robert Cooke

asked the Chancellor of the Exchequer whether he will consider introducing a VAT incentive for dealers selling works of art to public collections in the United Kingdom.

Mr. Robert Sheldon

I have noted the hon. Member's suggestion.

Mr. Robert Cooke

asked the Chancellor of the Exchequer whether he will consider removing the VAT incentive for dealers selling works of art to overseas customers.

Mr. Robert Sheldon

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