Value Added Tax (Hansard, 8 July 1982)

§ Mr. Viggers

asked the Chancellor of the Exchequer (1) what were the key assumptions and calculations used in reaching the estimate which he gave in his Budget Statement on 9 March, Official Report, c. 751, that the order that he proposed to lay before the House to continue to zero rate double glazing, loft and cavity wall insulation and damp-proof coursing would relieve the industry of all but £10 million of the extra annual £80 million tax imposed in consequence of a recent House of Lords judgment on value added tax for building alterations;

(2) whether it remains his view that, after the introduction of his proposed order to continue zero rating for certain works, the construction industry will face additional value added tax costs arising from the 1981 House of Lords Judgment, Customs v. ACT, of no more than the £10 million per annum which he estimated in his Budget Statement;

(3) whether, having regard to the decision of the High Court in the case of Customs and Excise v. Viva Gas Appliances Ltd., he still intends introducing an order in accordance with his March Budget proposal concerning value added tax and building alteration work; and if he will make a statement;

(4) what representations he has received from representative bodies in the construction industry regarding his March Budget proposal concerning value added tax and building alterations work.

200W