Building Materials and Fittings (Purchase Tax)

Oral Answers to Questions — National Finance – in the House of Commons at 12:00 am on 21st August 1945.

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Photo of Mr Francis Douglas Mr Francis Douglas , Battersea North 12:00 am, 21st August 1945

asked the Chancellor of the Exchequer what materials used in building houses and what fittings usually installed in them are liable to Purchase Tax; and at what rate of tax.

Photo of Mr Hugh Dalton Mr Hugh Dalton , Bishop Auckland

Since the answer contains a good deal of detail I will, with my hon. Friend's permission, circulate it in the Official Report.

Following is the answer:

No materials normally used for constructing the shell of a house are liable to Purchase Tax.

Of the fittings recommended to housing authorities by the Ministries of Health and Works in the Housing Manual, 1944, the following are liable to Purchase Tax:

Stoves, grates, boilers and auxiliary space and water heaters; cookers; wash boilers; draining boards and kitchen work tops; cupboards, drawers, dressers and plate racks; ceiling airers.

The rate of tax in each case is 33⅓ per cent. of the wholesale value.

If my hon. Friend has in mind any other fittings, not mentioned in the Manual, perhaps he will communicate with me.

Photo of Mr Henry Hynd Mr Henry Hynd , Hackney Central

asked the Chancellor of the Exchequer whether he will consider rescinding Purchase Tax on all articles required for rehousing purposes.

Photo of Sir Edward Keeling Sir Edward Keeling , Twickenham

asked the Chancellor of the Exchequer to what extent cookers, water heaters and refrigerators supplied to Government-built houses are exempt from Purchase Tax; and whether he will place Government-built houses and houses built by local authorities and private enterprise all on an equal footing in this respect.

Photo of Mr John Boyd-Carpenter Mr John Boyd-Carpenter , Kingston upon Thames

asked the Chancellor of the Exchequer whether he has considered the request made to him by letter, dated 1st August, 1945, by the borough council of Kingston-upon-Thames in its capacity as electricity undertakers for the borough, that Purchase Tax be remitted on domestic electrical apparatus required to equip new houses built in the borough; and what action he proposes to take on the request.

Photo of Flight Lieut Wavell Wakefield Flight Lieut Wavell Wakefield , St Marylebone

asked the Chancellor of the Exchequer if, in view of their essentiality, he will remove the Purchase Tax on electric cookers.

Photo of Mr Hugh Dalton Mr Hugh Dalton , Bishop Auckland

I have received suggestions from local authorities and from other quarters, that domestic electrical apparatus and other articles of household equipment should be exempted from Purchase Tax. I shall consider these and other suggestions for relief from Purchase Tax in the course of the general review, which I am now making, of the present levels of all forms of taxation.

Photo of Sir Edward Keeling Sir Edward Keeling , Twickenham

Will the right hon. Gentleman include in his consideration these articles, when they burn gas?