V
vernon
Guest
For those with the hope of cheaper bikes - the response crushes any hope of
17.5% 'discount'
I'm sure that the topic was covered here in urc a while ago.
VAT is a broad-based tax on consumer expenditure generally and reliefs from
it have always been strictly limited. When the UK joined the European
Community in 1973, it meant signing up to the general agreements which
covered the application of VAT throughout the EC. Under these and subsequent
agreements, signed by successive governments, we are allowed to keep our
existing VAT zero rates but not to introduce new ones. This means that we
cannot remove VAT from bicycles and other human powered vehicles or their
parts and spares.
The Government is taking practical steps to increase levels of cycling, as a
means of contributing to many of our key priorities including improving the
health of the nation, improving the environment and helping to reduce urban
congestion. In 2005, the Department for Transport launched Cycling England,
an independent expert body to co-ordinate cycling across the country with a
budget of £5m a year for a three-year period to allocate to cycling
programmes. This was increased to £10m a year in June 2006 with the
additional funding being targeted on funding safe links to school and
additional cycle training in schools. Cycling England has a free expert
advisory service to support local authorities to help them get the best
value out of their expenditure (around £60m in 2006/07) on cycling. £17m
(with match funding) is also being invested in six Cycling Demonstration
Towns over 3 years, to showcase best practice, and test whether by investing
at levels seen in successful European cycling cities we can start to see
similar levels of cycling in England.
17.5% 'discount'
I'm sure that the topic was covered here in urc a while ago.
VAT is a broad-based tax on consumer expenditure generally and reliefs from
it have always been strictly limited. When the UK joined the European
Community in 1973, it meant signing up to the general agreements which
covered the application of VAT throughout the EC. Under these and subsequent
agreements, signed by successive governments, we are allowed to keep our
existing VAT zero rates but not to introduce new ones. This means that we
cannot remove VAT from bicycles and other human powered vehicles or their
parts and spares.
The Government is taking practical steps to increase levels of cycling, as a
means of contributing to many of our key priorities including improving the
health of the nation, improving the environment and helping to reduce urban
congestion. In 2005, the Department for Transport launched Cycling England,
an independent expert body to co-ordinate cycling across the country with a
budget of £5m a year for a three-year period to allocate to cycling
programmes. This was increased to £10m a year in June 2006 with the
additional funding being targeted on funding safe links to school and
additional cycle training in schools. Cycling England has a free expert
advisory service to support local authorities to help them get the best
value out of their expenditure (around £60m in 2006/07) on cycling. £17m
(with match funding) is also being invested in six Cycling Demonstration
Towns over 3 years, to showcase best practice, and test whether by investing
at levels seen in successful European cycling cities we can start to see
similar levels of cycling in England.
