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Value Added Tax

Volume 164: debated on Thursday 21 December 1989

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To ask the Chancellor of the Exchequer what revenues he receives from the value added tax levied upon the sale of insulation, double glazing and heating control equipment; and whether he will make an estimate regarding the proportion of that tax which is reclaimed by value added tax registered traders.

Details of the VAT charged on the supply of insulation, double glazing and heating control equipment are not available separately from other VAT revenue. Neither is it possible to determine the amount of such tax which is recovered by registered traders as part of their normal input tax deductions. When these products are incorporated in new domestic dwellings there is no burden of tax because the supply of new housing is zero rated to the consumer.

To ask the Chancellor of the Exchequer what are the conditions under which value added tax may be recovered from privatised contracts for ancillary services within the National Health Service; and when these conditions were first made known.

The conditions under which VAT may be recovered in respect of these contracted out services are set out in the Treasury directions made under the provisions of section 11 of the Finance Act 1984. The first such direction was made in 1984 and the latest direction was published in the Edinburgh Gazette in the issue dated 7 April 1989. A copy is in the House Library.