§ Sir John FarrTo ask the Chancellor of the Exchequer when Her Majesty's Customs and Excise will produce guidelines on how the sporting value of land will be assessed for VAT.
§ Mr. Lilley[holding answer 24 May 1989]: Customs and Excise have no plans to issue any guidelines. VAT is a self-assessed tax and it is for vendors and lessors to make a fair and reasonable apportionment of the contract price or rent as between on the one hand the value of the exempt land and on the other the value of the taxable sporting rights. Most vendors and lessors will in any event be professionally advised in determining their asking price and the valuation of the sporting rights could be dealt with in that context. Customs will not, however, insist on a professional valuation and land owners will often have an indication of value by reference to rating assessments or to the income generated from the fishing, shooting and so on. Where, after 1 August 1989, a vendor or lessor had opted to tax his agricultural land transactions, there would be no need for an apportionment.