HC Deb 03 February 1992 vol 203 c13W
Mr. Peter Bottomley

To ask the Chancellor of the Exchequer what has been the highest rate of VAT; what goods or services carried this rate; and between what dates it was in force.

Mrs. Gillian Shephard

The highest rate of VAT applied to goods and services was 25 per cent. It was introduced on 18 November 1974 when it applied only to petrol. On 1 May 1975 its scope was extended to cover domestic electrical appliances, radios, televisions, hi-fi equipment, pleasure boats and aircraft, towing caravans, photographic equipment, furs, jewellery and services associated with these goods. The higher rate was reduced to 12½ per cent. on 12 April 1976 and abolished on 18 June 1979.

Mr. Beith

To ask the Chancellor of the Exchequer what would be the revenue cost in 1992–93 and 1993–94 of raising the registration threshold for VAT to(a) £50,000 and (b) £52,000.

Mrs. Gillian Shephard

[holding answer 31 January 1992]: The revenue cost of raising the VAT threshold to either £50,000 or £52,000 is estimated to be of the order of £150 million in a full year.