Vol. 440 No. 4
92 Ms McManus asked the Minister for Finance if his attention has been drawn to the fact that the proposed application of VAT to loss adjusters' charges will add significantly to the cost of loss adjusters; and if he will consider withdrawing that application.
I am fully aware of the implications of my budget announcement in relation to loss adjusters, which was that, from 1 September next, such services will be taxable at the standard rate of VAT. It is my view that there is no justification for continuing the exemption of the services in question, which are clearly provided in the course or furtherance of business. Moreover, the initiative will put all traders in this general area conducting broadly similar activities on the same footing in relation to VAT.
I do not intend to withdraw my proposal. The necessary provisions will be included in the forthcoming Finance Bill.
