§ Mr. Fraser
To ask the Chancellor of the Exchequer if he will review the decision of Customs and Excise to treat rent-free periods as benefit subject to value added tax.
§ Mrs. Gillian Shephard
It is long-standing Customs policy that rent-free periods are outside the scope of VAT unless services are performed in return by the tenant for the landlord. As this is uncommon, in practice only a few cases will lead to VAT being charged.