HC Deb 24 May 1989 vol 153 cc528-9W
Mr. Wigley

To ask the Chancellor of the Exchequer what representations he has received concerning the imposition of value added tax on pitch fees for static caravans; and if he will make it his policy to achieve consistency between the exemption from value added tax of retired people staying at hotels for periods in excess of four weeks, and such people staying at static caravans for similar periods of time.

Mr. Lilley

I have received a number of representations via right hon. and hon. Members and I met representatives of the British Holiday and Home Parks Association and the National Caravan Council on 3 May. There is no direct connection between the long-stay VAT relief for retired people living in hotels and VAT on static caravan pitch rentals at seasonal sites. The relief was introduced to protect retired people living in hotels as their permanent accommodation. There is no VAT at all on pitch rentals in non-seasonal caravan sites which may be used as permanent accommodation. Moreover, VAT on seasonal caravan sites applies not to the accommodation as such (the caravans are zero-rated) but only to the pitch rental —which is the right to locate the caravan on the park and have access to all the facilities of the holiday park.

Mr. Hardy

To ask the Chancellor of the Exchequer what is his estimate of the loss of value added tax or of the shortfall on the yield of value added tax as a result of shortages in the number of VAT control officers available for service.

Mr. Lilley

[holding answer 23 May 1989]: In their management plan for 1989–90 published in March, the commissioners of Customs and Excise estimated that if there was no improvement in the levels of recruitment and retention of staff, and if each additional control officer could secure the average yield of existing officers some £60 million of additional tax could be at stake: around 0.2 per cent. of the total VAT yield. Although Customs and Excise have been facing difficulties in recruiting and retaining staff, continuous efforts are being made to offset any potential loss of tax by the increasingly effective targeting of available resources.