Value Added Tax

HC Deb 02 March 1984 vol 55 cc364-5W

Mr. Lawrence

asked the Chancellor of the Exchequer what recent representations he has received requesting that charities be relieved of paying value added tax.

Mr. Hayhoe

During the last three months my Treasury colleagues and I have received a total of 66 representations from individuals and organizations regarding a general VAT relief for charities and similar bodies. I met a deputation from the Charities' VAT Reform Group on 7 February.

Mr. Lawrence

asked the Chancellor of the Exchequer what would be the cost to the Exchequer of relieving all existing charities from paying value added tax.

Mr. Hayhoe

Precisely how much such a relief would cost is not calculable, but it would certainly run into tens of millions of pounds of revenue.

Mr. Lawrence

asked the Chancellor of the Exchequer how many charities in the United Kingdom now pay value added tax.

Mr. Hayhoe

Precise information is not available. The number of active charities in the United Kingdom is thought to exceed 100,000; most of these, like other consumers, will incur VAT on the goods and services they buy. Charities which engage in business activities must register for VAT and charge VAT on their business supplies in the same way as other traders.