HC Deb 14 November 1972 vol 846 cc81-2W
73. Mr. Lamborn

asked the Chancellor of the Exchequer to what extent meals for the elderly provided by charitable organisations for Meals on Wheels and dinner clubs will be exempt from value added tax.

Mr. Higgins

Meals supplied to the elderly by charitable organisations whether through the meals on wheels service or in luncheon or dinner clubs are not generally supplied in the course of business and will therefore be outside the scope of value added tax. If meals are served in luncheon or dinner clubs in the course of business they will be liable to tax in the same way as in commercial restaurants.

Mr. Stallard

asked the Chancellor of the Exchequer whether he has considered the effects of value added tax on conditions of residents of hostels, as outlined in correspondence he has received from the hon. Member for St. Pancras, North and from Rowton Hotels Limited; and what action he proposes to take.

Mr. Higgins

Yes. The supply of accommodation in hotels, inns, boarding houses and similar commercial establishments will be chargeable at the standard rate of value added tax. There is provision for a reduction of the value for tax where the stay exceeds four weeks, as a result of which long-term residents should not be at a disadvantage, as far as accommodation is concerned compared with residents in other dwelling accommodation.

Meals served in the course of business will be within the scope of the tax.