§ Mr. Viggersasked the Chancellor of the Exchequer if he will make a statement on the value added tax treatment of building alteration work.
§ Mr. Hayhoe[pursuant to his reply, 4 July 1983, c. 23]: Building alteration work is zero rated for VAT purposes. The scope of this zero rating is currently the subject of litigation in the House of Lords in the case of Commissioners of Customs and Excise v Viva Gas Appliances Ltd. Pending the outcome of that litigation, there is nothing I can add to the statement made by the previous Economic Secretary to the Treasury on 19 July 1982 about the changes foreshadowed in the 1982 Budget Statement.
§ Mr. Greenwayasked the Chancellor of the Exchequer if he will approve a special value added tax scheme for the taxing of sales of secondhand horses and ponies on the dealer's gross profit margin; and if he will make a statement.
§ Mr. Hayhoe[pursuant to his reply, 4 July 1983, c. 23]: Yes. A Treasury order to this effect will shortly be introduced to come into effect on 1 October. I am satisfied that the application of VAT to the full selling price of horses and ponies sold for a second or subsequent time has resulted in distortion of trade, and that a special scheme can be effectively and economically controlled by Customs and Excise.
§ Mr. Viggersasked the Chancellor of the Exchequer what representations he has received about the 57W continuation of value added tax zero-rating relief for building alteration services supplied by the construction industry.
§ Mr. Hayhoe[pursuant to his reply, 4 July 1983, c. 23]: Representations have been received recently from the joint taxation committee of the construction industry expressing its close interest in this relief.