HC Deb 09 November 1973 vol 863 cc271-3W
Mr. Hamling

asked the Chancellor of the Exchequer why value added tax is levied on unsolicited gifts from Canada to United Kingdom residents in addition to customs duties; and whether he will make a statement.

Mr. Higgins

In principle imported gifts are liable to VAT because the tax applies to goods imported into the country as well as to supplies in the United Kingdom, and there is no general exemption for gifts. There is, however, a strictly limited concession under which unsolicited private gifts of small value sent by post to individuals in this country are admitted free of Customs charges including VAT.

Mr. Ashley

asked the Chancellor of the Exchequer what representations he has received from the Director of the National Fund for Research into Crippling Diseases concerning the effect of value added tax on the cost of equipment bought by charities for the purpose of medical research.

Mr. Higgins

A number of representations were received before the Budget and one letter has been received recently.

Mr. Ashley

asked the Chancellor of the Exchequer if he will receive a deputation from the National Fund for Research into Crippling Diseases on the effect of value added tax on the cost of equipment bought by charities for medical research.

Mr. Higgins

I am writing to the hon. Member.

Mr. Ashley

asked the Chancellor of the Exchequer what studies he has undertaken into the effect of value added tax in reducing the amount of equipment that charities are able to purchase for the purpose of medical research.

Mr. Higgins

My right hon. Friend reviewed the question of value added tax and charities before the Budget in the light of all the representations which had been received, including those on behalf of charitable trusts sponsoring medical research. Charities have normally borne indirect taxation on the goods that they have purchased and my right hon. Friend has decided to help charities by other fiscal concessions. Taking full account of the changeover to VAT, the cost to the Exchequer of the concessions to charities as a whole made in the last two Budgets is estimated to be of the order of £20 million in 1973–74.