§ Dr. MarekTo ask the Chancellor of the Exchequer whether he has any plans to ensure there is no discrimination as far as value-added tax is concerned between those people buying a purpose-built holiday home and those purchasing from current housing stock a dwelling for use as a second home; and if he will make a statement.
§ Mrs. Gillian ShephardThere is, and should he, a distinction drawn for VAT purposes between second homes which are capable of being occupied throughout the year and which may be treated as principal private residences—and purpose-built holiday homes which the buyers cannot occupy lawfully throughout the year or as their principal private residences. There is no reason why the latter should not be taxed under a broad based consumption tax such as VAT when other forms of holiday accommodation are taxed. Failure to do so would conflict with European Community law.