§ Mr. Gow
asked the Chancellor of the Exchequer whether he will set out in the Official Report a summary of the exemptions from value added tax for charities as the law now stands; what is his latest estimate of the total annual cost to the Exchequer of those exemptions; and what would be the annual cost of total exemptions for charities from value added tax.
§ Mr. Robert Sheldon
Value added tax has to be accounted for only on the taxable activities carried on by charities registered for the tax; the purely charitable work of charities is outside the scope of the tax and in most other cases their taxable turnover is below the registrable limit. There are the following specific reliefs from the tax by way of zero-rating:
No reliable estimates can be made of either the annual cost of these reliefs or of relieving charities of all VAT.
- (a) donated goods sold by charities established primarily for the relief of distress.
- (b) exports of any goods by charities;
- (c) medical or scientific equipment donated by charities to hospitals or research institutions;
- (d) supply of"talking books"to charities catering for the blind and other severely handicapped persons and of wireless sets for free loan to the blind; and
- (e) lifeboats and repairs and maintenance of lifeboats for the Royal National Lifeboat Institution.
§ Mr. Gow
asked the Chancellor of the Exchequer what was the total amount given to charities in the United Kingdom by individuals and corporations in each of the five years ended 5 April 1978 (a) under deed of covenant, (b) in other ways by gifts inter vivos from individuals and corporations and (c) by will.
(2) what was the gross amount of moneys contributed to charities in the United Kingdom under deed of covenant during each of the past five years by (a) individuals and (b) corporations; what was the amount of tax recovered by the recipient charities in each year; and what 372W is his latest estimate of the equivalent figures for the current financial year.
(3) what is his latest estimate of the cost to the Exchequer during the current financial year of relief from (a) income tax, (b) capital gains tax and (c) corporation tax for charities during the current financial year; and what are the equivalent figures for each of the past five years.