§ Mr. Heddleasked the Chancellor of the Exchequer what rate of value added tax is to be charged on telephone call and rental charges until 30 October and after 1 November; and if he will make a statement.
§ Mr. Peter Rees[pursuant to his reply, 25 October 1979, c. 291]: The effect of section 1(3) of the Finance (No. 2) Act 1979 is that the 8 per cent. rate of VAT will apply to all charges on a Post Office telephone bill which includes a rental charge for a rental quarter beginning before 1 November 1979. The 15 per cent. rate will apply to subsequent bills. These arrangements should ensure that calls made before 18 June 1979 will not attract the 15 per cent. rate.