§ Mr. Lathamasked the Chancellor of the Exchequer if he has yet completed his review of the 75 per cent. test for substantially reconstructed protected buildings; and whether he will make a statement.
§ Mr. Shersbyasked the Chancellor of the Exchequer if he has yet completed his review of the 75 per cent. test for substantially reconstructed protected buildings; and whether he will make a statement.
§ Mr. HayhoeYes. I am now satisfied that the "75 per cent. test" (one of two tests required for VAT zero rating of the sale or long lease of a substantially reconstructed protected building) is too severe to provide the broad equivalence with the old "50 per cent. test" which I promised in announcing the reliefs on 18 May, at columns271–72. A Treasury order will be laid as soon as possible after the Christmas recess reducing the qualifying figure from 75 to 60 per cent. This change has been welcomed by the Historic Buildings and Monuments Commission, to whose members and staff I should pay tribute for their help with the difficult task of reviewing the matter. Finally, I should add that since the order cannot have retrospective effect, I have authorised Customs and Excise to operate extra-statutorily as if 60 per cent., and not 75 per cent. had been the qualifying percentage between 1 June 1984 and the operative date of the order.