§ Ian LucasTo ask the Chancellor of the Exchequer (1) what estimates he has made of the amount of VAT(a) due on commission payments to independent financial advisers and (b) on commission payments to independent financial advisers collected in the latest year for which figures are available; [71310]
(2) if he will ensure that HM Customs and Excise communicate to independent financial advisers the fact that sales commission attracts VAT. [71309]
§ John HealeyCustoms and Excise has set out the VAT treatment of the services provided by independent financial advisers in the VAT public notice 701/49, "Finance and securities", published in March 2002. They will be issuing more detailed information specifically for such advisers shortly. Where VAT is due on an adviser's services, it will be at a rate of 17.5 per cent. There are no estimates available for VAT collected on such charges.