Written question asked by Peter Fry (Conservative), in the House of Commons. It was due for an answer on Tuesday, 21 January 1997. It was answered by Phillip Oppenheim (Conservative) on Tuesday, 21 January 1997 on behalf of the Treasury.

Treasury

Question: What is his estimate of the VAT currently lost to the Exchequer as a result of travel agents selling higher margin insurance with a high holiday discount instead of a low holiday discount and a lower insurance margin. - (Holding answer 20 January 1997).

Answer: Sir Peter Fry: To ask the Chancellor of the Exchequer what is his estimate of the VAT currently lost to the Exchequer as a result of travel agents selling higher margin insurance with a high holiday discount instead of a low holiday discount and a lower insurance margin. [11453] Mr. Oppenheim: [holding answer 20 January 1997]: VAT lost to the Exchequer is not dependent on the practice of holiday price discounting by travel agents. The usual pricing structure of the industry is that low margins are applied to holidays and high margins are applied to the associated sales of VAT exempt insurance.

Secondary information