Written question asked by Win Griffiths (Labour) on Wednesday, 22 November 2000, in the House of Commons. It was due for an answer on Tuesday, 28 November 2000. It was answered by Baroness Primarolo (Labour) on Tuesday, 28 November 2000 on behalf of the Treasury.

Treasury

Question: To ask Mr Chancellor of the Exchequer, what estimate he has made of the loss of VAT income due to the establishment by motor insurers of their own repair facilities which are not VAT-registered. - Inc figures.

Answer: Mr. Win Griffiths: To ask the Chancellor of the Exchequer what estimate he has made of the loss of VAT income due to the establishment by motor insurers of their own repair facilities which are not VAT- registered. [140458] Dawn Primarolo: A review by Customs and Excise into the VAT treatment of vehicle repairs carried out by motor insurers was completed earlier this year. It estimated that the VAT yield from vehicle repairs carried out by insurer-owned repairers was around £3.5 million less than it would be if these repairs were carried out by repairers not owned by insurance companies.

Secondary information