HC Deb 28 February 1978 vol 945 cc183-4W
Mr. Ian Stewart

asked the Chancellor of the Exchequer what has been the yield and the cost of collection of VAT on the antique trade in each year since the tax was introduced.

Mr. Robert Sheldon

I am afraid that separate information about the yield from VAT on the antique trade is not available but net receipts of VAT paid by antique dealers, second-hand furniture shops, picture framers and coin and stamp dealers, who are classified together for VAT statistical purposes, were as follows:

£ million
1973–74 3.8
1974–75 5.0
1975–76 4.3
1976–77 5.6

The cost of collecting VAT from the antique trade cannot be separately identified but the estimated cost of administering VAT as a whole has been about 2 pence for every £1 of net revenue.

Mr. Buchanan-Smith

asked the Chancellor of the Exchequer if he will exempt from the higher 12½ per cent. rate of value added tax items essential for the safety of fishing vessels such as navigation lights; and if he will make a statement.

Mr. Robert Sheldon

No. The 12½ per cent. higher rate of VAT applies to goods of a kind suitable for use as parts of higher rated boats. It would be impracticable to distinguish for VAT purposes between identical parts according to the type of boat in which they are to be installed. In practice, VAT-registered traders buying such equipment for their business use may reclaim the VAT as input tax.

However, the higher rate does not apply to liferafts which comply with the requirements of the Merchant Shipping (Life Saving Appliances) Rules 1965 nor to safety equipment such as flares, lifebuoys, lifejackets, safety harnesses and fire extinguishers.