HC Deb 02 May 1991 vol 190 cc297-8W
Mr. O'Brien

To ask the Chancellor of the Exchequer (1) what items of safety equipment used to prevent accidents both at home arid at work are exempt for VAT; and if he will make a statement;

(2) if he will list the items of safety equipment used in work places on which a refund of VAT can be claimed;

(3) if he has any proposals to introduce VAT exemptions on items of home safety equipment; and if he will make a statement.

Mrs. Gillian Shephard

The only items of safety equipment specifically zero rated for VAT are supplies of protective boots and helmets to industry for the purchaser's own personal use. VAT on other safety items supplied for use in respect of taxable business activities may be reclaimed in the normal way. It would be contrary

Mr. Maude

[Pursuant to his reply, 1 May 1991]: The answer should have read as follows:

The yield at 1991–92 levels of income of introducing the rates of income tax shown in the table is estimated to be about £1 billion in 1991–92, and about £2 billion in a full year.

Taxable income Rate
£ per cent.
1 to 23,700 25
23,700 to 30,200 40
30,200 to 36,700 45
36,700 and over 50

Taxable income is income subject to tax from all sources after deducting allowances and reliefs. The estimate does not take account of the consequential effect on capital gains tax, nor does it allow for any behavioural effects that might result from such an increase.