Orders of the Day — 14. Restriction of Zero-Rating (Construction of Buildings, etc.)

– in the House of Commons at 9:29 pm on 19th March 1984.

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Motion made, and Question,

That, with respect to supplies made on or after 1st June 1984, in Schedule 5 to the Value Added Tax Act 1983, Group 8 (construction of buildings, etc.) shall be amended as follows:—

(1) In item 2 (supply of services in the course of certain operations relating to buildings and civil engineering works), for paragraphs (a) and (b) there shall be substituted the words "in the course of the construction or demolition of".

(2) After Note (1) there shall be inserted the following Note:— (1A) Any reference in item 2 or the following Notes to the construction of any building or the construction of any civil engineering work does not include a reference to the conversion, reconstruction, alteration or enlargement of any existing building or civil engineering work, and the reference in item 1 to a person constructing a building shall be construed accordingly.

(3) In Note (2) (matters excluded from item 2), for paragraph (a) (which excluded repair or maintenance and is rendered unnecessary by the removal from item 2 of the reference to alteration) there shall be substituted the following paragraph:— (a) the supply of any services in the course of the construction of any building ("the secondary building") within the grounds or garden of another building ("the main building") which is used or to be used wholly or mainly as a private residence except—

  1. (i) where the secondary building is itself to be so used; or
  2. (ii) where the secondary building is a garage which is to be used and occupied together with another building which is being constructed at the same time as the secondary building and which is either the main building or another secondary building which is to be used wholly or mainly as a private residence."

(4) In Note (2)—

  1. (a) in paragraph (b), the words "or alteration", and
  2. (b) paragraph (c) (supply of services otherwise than in the course or furtherance of a business), shall be omitted.

(5) After Note (2) there shall be inserted the following Note:— (2A) In item 3, the goods referred to in paragraph (a) do not include—

  1. (a) finished or prefabricated furniture, other than furniture designed to be fitted in kitchens; or
  2. (b) materials for the construction of fitted furniture, other than kitchen furniture; or
  3. (c) domestic electrical or gas appliances, other than those designed to provide space heating or water heating or both."
This Resolution shall not authorise the making of amendments that would make value added tax chargeable at a rate other than either nil or the rate specified in section 9 of the Value Added Tax Act 1983.And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.—[Mr. Lawson.]

put forthwith pursuant to Standing Order No. 114 (Ways and Means motions):—

The House divided: Ayes 345, Noes 208.

Division No. 191][10.43 pm
Aitken, JonathanBottomley, Peter
Alison, Rt Hon MichaelBowden, A. (Brighton K'to'n)
Amery, Rt Hon JulianBowden, Gerald (Dulwich)
Amess, DavidBoyson, Dr Rhodes
Ancram, MichaelBraine, Sir Bernard
Arnold, TomBrandon-Bravo, Martin
Ashby, DavidBright, Graham
Aspinwall, JackBrinton, Tim
Atkins, Rt Hon Sir H.Brittan, Rt Hon Leon
Atkins, Robert (South Ribble)Brooke, Hon Peter
Baker, Rt Hon K. (Mole Vall'y)Brown, M. (Brigg & Cl'thpes)
Baker, Nicholas (N Dorset)Browne, John
Baldry, AnthonyBryan, Sir Paul
Banks, Robert (Harrogate)Buchanan-Smith, Rt Hon A.
Batiste, SpencerBuck, Sir Antony
Beaumont-Dark, AnthonyBudgen, Nick
Bellingham, HenryBulmer, Esmond
Bendall, VivianBurt, Alistair
Bennett, Sir Frederic (T'bay)Butcher, John
Benyon, WilliamButler, Hon Adam
Berry, Sir AnthonyButterfill, John
Best, KeithCarlisle, Kenneth (Lincoln)
Bevan, David GilroyCarttiss, Michael
Biffen, Rt Hon JohnChannon, Rt Hon Paul
Biggs-Davison, Sir JohnChapman, Sydney
Blaker, Rt Hon Sir PeterChope, Christopher
Body, RichardChurchill, W. S.
Bonsor, Sir NicholasClark, Hon A. (Plym'th S'n)
Clark, Sir W. (Croydon S)Hickmet, Richard
Clarke, Rt Hon K. (Rushcliffe)Hicks, Robert
Cockeram, EricHiggins, Rt Hon Terence L.
Conway, DerekHind, Kenneth
Coombs, SimonHogg, Hon Douglas (Gr'th'm)
Cope, JohnHolland, Sir Philip (Gedling)
Cormack, PatrickHolt, Richard
Corrie, JohnHooson, Tom
Couchman, JamesHordern, Peter
Critchley, JulianHoward, Michael
Crouch, DavidHowarth, Alan (Stratf'd-on-A)
Dickens, GeoffreyHowarth, Gerald (Cannock)
Dicks, TerryHowell, Rt Hon D. (G'ldford)
Dorrell, StephenHubbard-Miles, Peter
Douglas-Hamilton, Lord J.Hunt, David (Wirral)
Dover, DenHunt, John (Ravensbourne)
du Cann, Rt Hon EdwardHunter, Andrew
Durant, TonyHurd, Rt Hon Douglas
Dykes, HughIrving, Charles
Edwards, Rt Hon N. (P'broke)Jackson, Robert
Eggar, TimJenkin, Rt Hon Patrick
Emery, Sir PeterJohnson-Smith, Sir Geoffrey
Evennett, DavidJones, Gwilym (Cardiff N)
Eyre, Sir ReginaldJones, Robert (W Herts)
Fairbairn, NicholasJopling, Rt Hon Michael
Fallon, MichaelJoseph, Rt Hon Sir Keith
Favell, AnthonyKellett-Bowman, Mrs Elaine
Fenner, Mrs PeggyKershaw, Sir Anthony
Finsberg, Sir GeoffreyKey, Robert
Fletcher, AlexanderKing, Roger (B'ham N'field)
Fookes, Miss JanetKing, Rt Hon Tom
Forman, NigelKnight, Gregory (Derby N)
Forsyth, Michael (Stirling)Knight, Mrs Jill (Edgbaston)
Forth, EricKnowles, Michael
Fowler, Rt Hon NormanKnox, David
Fox, MarcusLamont, Norman
Franks, CecilLang, Ian
Fraser, Peter (Angus East)Latham, Michael
Freeman, RogerLawrence, Ivan
Fry, PeterLawson, Rt Hon Nigel
Gale, RogerLee, John (Pendle)
Galley, RoyLeigh, Edward (Gainsbor'gh)
Gardiner, George (Reigate)Lennox-Boyd, Hon Mark
Gardner, Sir Edward (Fylde)Lester, Jim
Garel-Jones, TristanLewis, Sir Kenneth (Stamf'd)
Gilmour, Rt Hon Sir IanLightbown, David
Glyn, Dr AlanLilley, Peter
Goodhart, Sir PhilipLloyd, Ian (Havant)
Goodlad, AlastairLloyd, Peter, (Fareham)
Gorst, JohnLord, Michael
Gow, IanLyell, Nicholas
Gower, Sir RaymondMcCrindle, Robert
Grant, Sir AnthonyMcCurley, Mrs Anna
Greenway, HarryMacfarlane, Neil
Gregory, ConalMacGregor, John
Griffiths, E. (B'y St Edm'ds)MacKay, Andrew (Berkshire)
Griffiths, Peter (Portsm'th N)MacKay, John (Argyll & Bute)
Grist, IanMaclean, David John.
Ground, PatrickMcNair-Wilson, M. (N'bury)
Grylls, MichaelMcNair-Wilson, P. (New F'st)
Gummer, John SelwynMcQuarrie, Albert
Hamilton, Hon A. (Epsom)Madel, David
Hamilton, Neil (Tatton)Major, John
Hampson, Dr KeithMalins, Humfrey
Hanley, JeremyMalone, Gerald
Hannam, JohnMaples, John
Hargreaves, KennethMarland, Paul
Harris, DavidMarshall, Michael (Arundel)
Harvey, RobertMates, Michael
Haselhurst, AlanMaude, Hon Francis
Havers, Rt Hon Sir MichaelMaxwell-Hyslop, Robin
Hawkins, C. (High Peak)Mayhew, Sir Patrick
Hawksley, WarrenMellor, David
Hayes, J.Merchant, Piers
Hayhoe, BarneyMeyer, Sir Anthony
Hayward, RobertMiller, Hal (B'grove)
Heath, Rt Hon EdwardMills, Iain (Meriden)
Heddle, JohnMills, Sir Peter (West Devon)
Henderson, BarryMiscampbell, Norman
Heseltine, Rt Hon MichaelMitchell, David (NW Hants)
Moate, RogerSoames, Hon Nicholas
Monro, Sir HectorSpeed, Keith
Montgomery, FergusSpeller, Tony
Moore, JohnSpencer, Derek
Morris, M. (N'hampton, S)Spicer, Michael (S Worcs)
Morrison, Hon C. (Devizes)Stanbrook, Ivor
Morrison, Hon P. (Chester)Stanley, John
Moynihan, Hon C.Steen, Anthony
Mudd, DavidStern, Michael
Neale, GerrardStevens, Lewis (Nuneaton)
Needham, RichardStevens, Martin (Fulham)
Nelson, AnthonyStewart, Allan (Eastwood)
Neubert, MichaelStewart, Andrew (Sherwood)
Newton, TonyStewart, Ian (N Hertf'dshire)
Nicholls, PatrickStokes, John
Normanton, TomSumberg, David
Norris, StevenTapsell, Peter
Onslow, CranleyTaylor, John (Solihull)
Page, John (Harrow W)Taylor, Teddy (S'end E)
Page, Richard (Herts SW)Tebbit, Rt Hon Norman
Parris, MatthewTemple-Morris, Peter
Patten, Christopher (Bath)Thomas, Rt Hon Peter
Patten, John (Oxford)Thompson, Donald (Calder V)
Pawsey, JamesThompson, Patrick (N'ich N)
Peacock, Mrs ElizabethThorne, Neil (Ilford S)
Percival, Rt Hon Sir IanThornton, Malcolm
Pink, R. BonnerThurnham, Peter
Pollock, AlexanderTownend, John (Bridlington)
Porter, BarryTownsend, Cyril D. (B'heath)
Powell, William (Corby)Tracey, Richard
Powley, JohnTrippier, David
Prentice, Rt Hon RegTrotter, Neville
Price, Sir DavidTwinn, Dr Ian
Proctor, K. Harveyvan Straubenzee, Sir W.
Pym, Rt Hon FrancisVaughan, Sir Gerard
Raffan, KeithViggers, Peter
Raison, Rt Hon TimothyWaddington, David
Rathbone, TimWakeham, Rt Hon John
Rees, Rt Hon Peter (Dover)Waldegrave, Hon William
Renton, TimWalden, George
Rhodes James, RobertWalker, Bill (T'side N)
Rhys Williams, Sir BrandonWalker, Rt Hon P. (W'cester)
Ridley, Rt Hon NicholasWall, Sir Patrick
Ridsdale, Sir JulianWaller, Gary
Rifkind, MalcolmWalters, Dennis
Roberts, Wyn (Conwy)Wardle, C. (Bexhill)
Robinson, Mark (N'port W)Warren, Kenneth
Roe, Mrs MarionWatson, John
Rossi, Sir HughWells, Bowen (Hertford)
Rost, PeterWells, John (Maidstone)
Rumbold, Mrs AngelaWheeler, John
Ryder, RichardWhitfield, John
Sackville, Hon ThomasWhitney, Raymond
Sainsbury, Hon TimothyWiggin, Jerry
St. John-Stevas, Rt Hon N.Winterton, Mrs Ann
Sayeed, JonathanWinterton, Nicholas
Scott, NicholasWolfson, Mark
Shaw, Giles (Pudsey)Wood, Timothy
Shaw, Sir Michael (Scarb')Woodcock, Michael
Shelton, William (Streatham)Yeo, Tim
Shepherd, Colin (Hereford)Young, Sir George (Acton)
Shepherd, Richard (Aldridge)Younger, Rt Hon George
Shersby, Michael
Silvester, FredTellers for the Ayes:
Sims, RogerMr. Carol Mather and Mr. Robert Boscawen.
Skeet, T. H. H.
Smith, Tim (Beaconsfield)
Adams, Allen (Paisley N)Barron, Kevin
Alton, DavidBeckett, Mrs Margaret
Anderson, DonaldBeggs, Roy
Archer, Rt Hon PeterBell, Stuart
Ashdown, PaddyBenn, Tony
Ashley, Rt Hon JackBennett, A. (Dent'n & Red'sh)
Ashton, JoeBermingham, Gerald
Atkinson, N. (Tottenham)Bidwell, Sydney
Bagier, Gordon A. T.Blair, Anthony
Banks, Tony (Newham NW)Boothroyd, Miss Betty
Barnett, GuyBoyes, Roland
Bray, Dr JeremyHughes, Simon (Southwark)
Brown, Gordon (D'f'mline E)Janner, Hon Greville
Brown, Hugh D. (Provan)Jenkins, Rt Hon Roy (Hillh'd)
Brown, R. (N'c'tle-u-Tyne N)John, Brynmor
Bruce, MalcolmJones, Barry (Alyn S Deeside)
Caborn, RichardKaufman, Rt Hon Gerald
Callaghan, Jim (Heyw'd & M)Kennedy, Charles
Campbell, IanKilroy-Silk, Robert
Campbell-Savours, DaleKirkwood, Archibald
Canavan, DennisLambie, David
Carlile, Alexander (Montg'y)Lamond, James
Carter-Jones, LewisLeadbitter, Ted
Cartwright, JohnLeighton, Ronald
Clay, RobertLewis, Ron (Carlisle)
Cocks, Rt Hon M. (Bristol S.)Lewis, Terence (Worsley)
Cohen, HarryLitherland, Robert
Coleman, DonaldLloyd, Tony (Stretford)
Concannon, Rt Hon J. D.Lofthouse, Geoffrey
Conlan, BernardLoyden, Edward
Cook, Frank (Stockton North)McCartney, Hugh
Cook, Robin F. (Livingston)McCrea, Rev William
Corbett, RobinMcDonald, Dr Oonagh
Corbyn, JeremyMcKay, Allen (Penistone)
Cowans, HarryMcKelvey, William
Cox, Thomas (Tooting)Mackenzie, Rt Hon Gregor
Craigen, J. M.McWilliam, John
Crowther, StanMadden, Max
Cunningham, Dr JohnMaginnis, Ken
Davies, Rt Hon Denzil (L'lli)Marek, Dr John
Davies, Ronald (Caerphilly)Marshall, David (Shettleston)
Davis, Terry (B'ham, H'ge H'l)Martin, Michael
Deakins, EricMason, Rt Hon Roy
Dewar, DonaldMaxton, John
Dixon, DonaldMaynard, Miss Joan
Dormand, JackMeacher, Michael
Douglas, DickMeadowcroft, Michael
Dubs, AlfredMichie, William
Duffy, A. E. P.Mikardo, Ian
Dunwoody, Hon Mrs G.Millan, Rt Hon Bruce
Eadie, AlexMiller, DrM. S. (E Kilbride)
Eastham, KenMolyneaux, Rt Hon James
Ellis, RaymondMorris, Rt Hon A. (W'shawe)
Evans, John (St. Helens N)Morris, Rt Hon J. (Aberavon)
Fatchett, DerekNellist, David
Field, Frank (Birkenhead)Nicholson, J.
Fields, T. (L'pool Broad Gn)Oakes, Rt Hon Gordon
Fisher, MarkO'Brien, William
Flannery, MartinO'Neill, Martin
Foot, Rt Hon MichaelOrme, Rt Hon Stanley
Forrester, JohnOwen, Rt Hon Dr David
Forsythe, Clifford (S Antrim)Park, George
Foster, DerekPatchett, Terry
Fraser, J. (Norwood)Pendry, Tom
Freeson, Rt Hon ReginaldPenhaligon, David
Freud, ClementPike, Peter
George, BrucePowell, Rt Hon J. E. (S Down)
Gilbert, Rt Hon Dr JohnPowell, Raymond (Ogmore)
Godman, Dr NormanPrescott, John
Golding, JohnRadice, Giles
Gould, BryanRees, Rt Hon M. (Leeds S)
Gourlay, HarryRichardson, Ms Jo
Hamilton, James (M'well N)Robinson, P. (Belfast E)
Hamilton, W. W. (Central Fife)Rogers, Allan
Hardy, PeterRooker, J. W.
Harman, Ms HarrietRoss, Ernest (Dundee W)
Harrison, Rt Hon WalterRoss, Wm. (Londonderry)
Hart, Rt Hon Dame JudithRowlands, Ted
Haynes, FrankRyman, John
Healey, Rt Hon DenisSedgemore, Brian
Heffer, Eric S.Sheerman, Barry
Hogg, N. (C'nauld & Kilsyth)Sheldon, Rt Hon R.
Holland, Stuart (Vauxhall)Shore, Rt Hon Peter
Home Robertson, JohnShort, Mrs (W'hampt'n NE)
Howell, Rt Hon D. (S'heath)Skinner, Dennis
Howells, GeraintSmith, C.(Isl'ton S & F'bury)
Hoyle, DouglasSmith, Cyril (Rochdale)
Hughes, Dr. Mark (Durham)Smith, Rt Hon J. (M'kl'ds E)
Hughes, Robert (Aberdeen N)Smyth, Rev W. M. (Belfast S)
Hughes, Roy (Newport East)Soley, Clive
Hughes, Sean (Knowsley S)Spearing, Nigel
Steel, Rt Hon DavidWardell, Gareth (Gower)
Stewart, Rt Hon D. (W Isles)Wareing, Robert
Stott, RogerWeetch, Ken
Strang, GavinWelsh, Michael
Straw, JackWhite, James
Taylor, Rt Hon John DavidWigley, Dafydd
Thomas, Dafydd (Merioneth)Williams, Rt Hon A.
Thomas, Dr R. (Carmarthen)Wilson, Gordon
Thompson, J. (Wansbeck)Winnick, David
Thorne, Stan (Preston)Wrigglesworth, Ian
Tinn, JamesYoung, David (Bolton SE)
Torney, Tom
Wainwright, R.Tellers for the Noes:
Walker, Cecil (Belfast N)Mr. Austin Mitchell and Mr. Lawrence Cuncliffe.
Wallace, James

Question accordingly agreed to.

Photo of Mr Bernard Weatherill Mr Bernard Weatherill , Croydon North East

Have I now the permission of the House to put the Questions on motions Nos. 15 to 21 together? It appears that I have.