Service Charities

HC Deb 09 March 1981 vol 1000 cc259-60W

Mr. Kilfedder

asked the Chancellor of the Exchequer (1) what was the total amount paid last year by way of value added tax by service charities;

(2) what proportion of the expenditure of service charities last year was accounted for by payment of value added tax.

Mr. Peter Rees

I regret that this information is not available.

Mr. Kilfedder

asked the Chancellor of the Exchequer whether he will consider including service charities such as Mencap under section 15(3)(l)of the Finance Act 1972.

Mr. Peter Rees

No. Section 15 of the Finance Act 1972 is mainly concerned with the financing of local authorities and certain other public bodies for which, in the absence of this special provision for refund of VAT incurred on non-business activities, the tax would simply have fallen on the rate support grant, the rates or similar statutory levies.