§ Mr. Greenwayasked the Chancellor of the Exchequer what is the estimated value added tax yield on British Standard Institute approved standard of hard riding hats in the latest year for which figures are available.
§ Mr. Hayhoe[pursuant to his reply, 16 November 1984, c. 374]: Traders are not required to make returns of 42W scheme but, as was indicated in the Inland Revenue Press Release of 13 March 1984, it was decided to defer the implementation date for local authorities to 6 April 1986 to allow time for further consideration of how the scheme would apply in detail in their particular circumstances.
With effect from 6 April 1986 all local authorities, other than parish and community councils, will be brought into the composite rate scheme.
The consultations between the Inland Revenue and local authority representative bodies which were foreshadowed in the Inland Revenue Press Release of 13 March have identified one particular area of potential difficulty: the impact of the scheme on existing local authority non-negotiable bonds and mortgages. Because of the terms under which these bonds and mortgages are issued, the transitional arrangement in Finance Act 1984 which excludes from the scheme certain fixed-term deposits made before 6 July 1984 cannot apply to them. It would be inappropriate for composite rate to apply where people had tied up their money in this type of investment before the scheme was announced or before its detailed implications had become widely understood. We therefore propose to bring forward legislation in next year's Finance Bill which will exclude from the scheme all local authority non-negotiable bonds and mortgages issued or renewed before 19 November 1984.