§ Ms EagleTo ask the Chancellor of the Exchequer (1) what forecast he has made of the revenue which would be raised by introducing a definition of education in schedule 6 to the Value Added Tax Act 1983 that excluded(a) music, (b) flower arranging and (c) domestic science, taught at adult education classes throughout the United Kingdom, from exemption;
(2) what revenue he would expect to raise by applying a definition of "education" in schedule 6 to the Value Added Tax Act 1983 that excluded adult residential colleges from exemption.
§ Sir John CopeNo estimates have been made of the likely revenue effects.
§ Ms EagleTo ask the Chancellor of the Exchequer what guidance he has given to Customs and Excise in defining the terms and the scope of their investigations into the interpretation of the 6th VAT directive (77/388/EEC) with respect to education.
§ Sir John CopeNone. Customs and Excise is undertaking an internal review of the VAT exemptions available for educational services provided by fee-paying schools, universities and other businesses to see whether, within the constraints of EC agreements there is scope for simplification and rationalisation, and will report their conclusions to Ministers in due course.