§ Mr. DrewTo ask the Chancellor of the Exchequer if he will make a statement on his Department's policy on 59W people who take part in (a) local exchange trading schemes and (b) time banks with specific reference to taxation. [8589]
§ Mr. Boateng[holding answer 18 October 2001]: Local exchange and trading schemes and time banks are dealt with in accordance with normal tax rules. If a trader offers their goods and services through a LETS scheme then they will be liable to tax in the normal way. If a non-trader offers their goods and services through a scheme there should be no liability. Since both the form of these organisations and of members' activities within them can differ, anyone in doubt about the tax position, whether organiser or scheme member, should check the position with the local tax office.