Mr. BellottTo ask the Chancellor of the Exchequer if he will make it his policy to ensure that second-hand goods retain zero rate of value added tax; and if he will make a statement.
§ Mrs. Gillian ShephardThe only zero rate of value added tax on goods solely because they are second-hand applies to donated goods sold by charity shops. There are, however, special schemes for accounting for tax on some second-hand goods. I have no plans to change either system.
§ Mr. David NicholsonTo ask the Chancellor of the Exchequer what rate of value added tax is payable on work done or services provided in the period up to 31 March 1991.
§ Mrs. Gillian ShephardTraders are entitled to charge the old rate (15 per cent.) on goods or services supplied up to 31 March. This applies even where a tax invoice is issued after that date in respect of such goods and services. Normally, this would create a tax point at the new rate, but the law includes a concession which allows traders to apply the old rate.