No: CE 2                                             28 November 1995


                          BUDGET 1995 : VAT

            INCREASED THRESHOLDS TO HELP SMALL BUSINESS


The Chancellor announced that from midnight tonight the VAT 
registration threshold will be increased from 46,000 Pounds to 47,000 
Pounds and the deregistration threshold will rise from 44,000 Pounds 
to 45,000 Pounds.  From 1 January 1996 the registration and 
deregistration thresholds for acquisitions from other EC countries 
will also both rise from 46,000 Pounds to 47,000 Pounds.

The increases are broadly in line with inflation. The UK's VAT 
thresholds are higher than in any other EU member state. This keeps 
many small businesses out of VAT and encourages new start-ups.


NOTES FOR EDITORS

1.     The estimated revenue yield of this measure on an indexed base 
       is 10 million Pounds in 1996/97 and 10 million Pounds in 
       1997-98.

2.     Details for traders are available in Budget notice BN 132/95.




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