Skip to main content

VAT: Aviation

Volume 477: debated on Friday 13 June 2008

To ask the Chancellor of the Exchequer if he will estimate the annual income to Exchequer funds which would arise from ending the exemption from value added tax of aviation. (209942)

[holding answer 10 June 2008]: HM Revenue and Customs does not hold sufficient information with which to estimate the revenue impacts from applying different rates of VAT to the aviation sector, even if our international agreements allowed the UK to do so. However, under the normal rules of the tax, any additional VAT that might be incurred by a VAT registered airline or other VAT registered business could be reclaimed to the extent that it relates to their taxable business activities.