HM Customs and Excise 1
                                                 17 March 1998

______________________________________________________________

VAT THRESHOLDS INCREASED AND CONSULTATION ANNOUNCED

The Chancellor announced today that the VAT registration and
deregistration thresholds will be increased from 1 April 1998
to 50,000 pounds and 48,000 pounds respectively.

Following representations from small businesses, there will
also be consultation on the VAT thresholds and their impact on
competition between registered and unregistered businesses.


DETAILS

1.     From 1 April 1998, the VAT registration threshold,
       which determines when a person becomes liable to
       register, will be increased from 49,000 pounds to
       50,000 pounds and the deregistration threshold from
       47,000 pounds to 48,000 pounds.  The registration and
       deregistration thresholds for acquisitions from other
       EC countries will also be increased from 49,000 pounds
       to 50,000 pounds on the same date.


2.     Customs and Excise will shortly be publishing a
       consultation document on VAT thresholds. Following the
       date of publication 3 months will be allowed for 
       representations to be made.


NOTES FOR EDITORS

1.  The estimated cost to the Exchequer of increasing the
    thresholds is 5m pounds in 1998/99 against an indexed
    base.

2.  Details for traders are available in Budget notice 
    BN 37/98, which is available from Customs and Excise
    Business Advice Centres and from the Customs and
    Excise Internet site.








Press enquiries only to HM Customs and Excise, Public
Relations Office, New King's Beam House, 22 Upper Ground,
London, SE1 9PJ.  
Telephone:  0171 865 5468/5471

Others should contact their local VAT Business Advice Centre,
listed under Customs and Excise in the telephone book.

Customs and Excise Internet address: 
http://www.open.gov.uk/customs/c&ehome.htm

This news release can also be found at :
http://www.hm-treasury.gov.uk. Other Treasury material can
also be found at this address.