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Vat (United States Forces)

Volume 124: debated on Thursday 10 December 1987

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To ask the Chancellor of the Exchequer what is the estimated loss to the Exchequer of exempting maintenance and equipment contracts for United States forces in Britain from value added tax; under what authority this is done; and if he will make a statement.

The information on revenue forgone is not available and could be obtained only at disproportionate cost.Relief from the United Kingdom duties and taxes is afforded to United States visiting forces under the authority of an exchange of notes between the governments of the United Kingdom and the United States of America which was made in 1952 and which supplements earlier agreements including the mutual defence assistance agreement of 1950.