§ Mr. Alfred Morrisasked the Chancellor of the Exchequer what is his estimate of total value added tax receipts on purchase and lease of cars leased by Motability in the 12 months (a) before 18 June 1979 and (b) after 18 June 1979; and what is the net loss to the revenue in the current financial year of charging only 15 per cent. on the lease as opposed to 8 per cent. on both lease and purchase.
§ Mr. Peter ReesSuch information as is available is as follows:
£ thousand VAT on purchase of vehicles VAT on rentals Year to 30 June 1979 400 85 Year to 30 June 1980 — 500 It is estimated that the loss to the revenue of charging only 15 per cent. on the lease as opposed to 8 per cent. on both lease and purchase in the year ended 30 June 1980 was about £425,000. An estimate for the current financial year is not available.