§ 20. Mr. Lennox-Boydasked the Chancellor of the Exchequer if he will make a statement about the European Economic Community Commission proposal to make used car vehicle sales liable to value added tax.
§ Mr. Bruce-GardyneUsed car sales in the United Kingdom are currently subject to value added tax at 15 per cent. However, tax is based on the dealer's gross margin, not the full selling price. The Commission's proposal adopts a different basis from that currently used in the United Kingdom. Discussion of the proposal is continuing, but a number of countries, including the United Kingdom, have serious objections.