§ Mr. Barnettasked the Chancellor of the Exchequer if he will make a statement clarifying his rules for the assessment of tax in respect of funds raised by carnivals and similar organisations; and whether he will take steps to ensure that, even where the organisation concerned is not registered as a charity, only earnings including interest shall be subject to tax and not funds collected at a charity fete or similar function.
§ Mr. Harold LeverThe general rule is that funds raised by carnivals and similar functions are subject to tax if and only if they arise from trading activities; and this is so whether the profit arises to a charity or some other body. If my hon.244W Friend has a particular case in mind and will let me have details about it I will have it looked into and will write to him.