§ Mr. Austin Mitchellasked the Chancellor of the Exchequer what is his estimate of the cost to the Exchequer in a full year of abolishing value added tax on all legal fees.
§ Mr. HayhoeI regret that the information is not available to make a reasonable estimate. The tax charged in 1982–83 by persons registered for VAT as supplying legal services was about £300 million but the amount charged to clients who are themselves registered for VAT is deductible by those clients when calculating their own VAT liability.
§ Mr. Austin Mitchellasked the Chancellor of the Exchequer what is his estimate of the cost to the Exchequer in a full year of abolishing value added tax on house agents' fees.
§ Mr. HayhoeIt is estimated that the loss of revenue from the zero-rating of house agents fees would be of the order of £100–£125 million year.