§ Mr. Teddy Taylor
asked the Chancellor of the Exchequer how much revenue is received in value added tax from charity shops; and if he will make a statement.
§ Mr. Peter Rees
Separate information about charity shops is not available.
There is no general relief from VAT for charities purely because of charitable status. A charity shop selling goods to 243W the general public in order to raise funds is in business and is, in general, required to pay tax unless the responsible organisation is exempt from registration because its taxable turnover does not exceed the prescribed limit—currently £13,500 a year. However, subject to certain conditions, goods may be sold free of tax if they are donated to a charity established primarily for the relief of distress as defined in the law—broadly speaking the relief of poverty or ill-health.