§ Mr. Trotterasked the Chancellor of the Exchequer why VAT is charged on the costs of forming a limited company; whether the charge is applied to the £50 Government duty payable by a new company; whether the ruling in this respect has been changed and, if so, with effect from what date whether the VAT payable on a company formation is regarded as a pre-incorporation expense not re-claimable by the company; and if he will give examples of other Government duties on which VAT is payable.
§ Mr. Robert SheldonI will let the hon. Member have a reply as soon as possible.