§ Sir John Pageasked the Chancellor of the Exchequer if he will make a statement on the practice of Her Majesty's Customs and Excise in relation to the levying of value added tax on mortgage valuation fees charged by (a) chartered surveyors and (b) building society staff surveyors.
§ Mr. HayhoeSupplies of surveying services by VAT registered chartered surveyors are liable to VAT at the standard rate of 15 per cent. Mortgage valuation fees charged to building societies by independent chartered surveyors are therefore subject to the tax. Where it is the practice of a building society to use its own staff to survey properties there is no supply of services for VAT purposes and no tax is chargeable.