Re: End of an era.
Hi Mark,
Introduced in April 1973 the VAT rate was only 10% and was reduced to 8% in July 1974. VAT had to be added to TV rentals including existing contracts.
In July 1974, Labour Chancellor Denis Healey reduced the standard rate of VAT from 10% to 8% but introduced a new higher rate of 12.5% for petrol and some luxury goods. In November 1974, Healey doubled the higher rate of VAT to 25%. Healey reduced the higher rate back to 12.5% in April 1976.
I remember that new rental contracts were subject to the new higher rate and existing rental contracts remained at 8%.
Despite the doom laden comments in the Practical Television magazine the trade did prosper very well all through the 70s, 80s and 90s.
DFWB.
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