§ Mr. Roseasked the Chancellor of the Exchequer whether he will make a statement clarifying the question of the imposition of value added tax on tribute money.
§ Mr. HigginsI assume that the hon. Member has in mind the "tribute money" paid by members of the Mothers' Union: as a donation this money is outside the scope of VAT and the treasurer of the union has been advised to this effect.
§ Mr. Alfred Morrisasked the Chancellor of the Exchequer what representations he has received concerning the effect of value added tax on the cost of equipment bought by charities for the purpose of medical research; and if he will make a statement.
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§ Mr. HigginsA number of representations have been received.
On the second part of the Question, I would refer the hon. Member to my reply on 2nd November to the hon. Member for Willesden, West (Mr. Pavitt).—[Vol. 863, c. 25.]
§ Mr. Alfred Morrisasked the Chancellor of the Exchequer what is his estimate of the revenue the Treasury will receive in the present financial year from imposing value added tax on the proceeds of jumble sales and bazaars organised by national charities for the purpose of raising funds for charitable projects.
§ Mr. HigginsThe Value Added Tax (Charities) Order 1973 zero-rates sales by a charity established primarily for the relief of distress of goods which have been donated for sale. Jumble sales and bazaars organised by an unincorporated association of persons which has a total taxable turnover not exceeding £5,000 a year are exempt from VAT even though the proceeds may be wholly donated to a charity which is registered for VAT.
Most jumble sales and bazaars should therefore not bear VAT on their proceeds and no estimate has been made of the potential revenue.
§ Mr. Alfred Morrisasked the Chancellor of the Exchequer what is his estimate of the number of man-hours that will be expended in the current financial year by voluntary workers of national charities in computing and remitting the value added tax imposed on the proceeds of jumble sales and bazaars which they have organised for the purpose of raising money for charitable projects.
§ Mr. HigginsMost jumble sales and bazaars should not bear VAT on their proceeds and no such estimate has been made.
§ Mr. Alfred Morrisasked the Chancellor of the Exchequer (1) if he will take steps to exempt from value added tax purchases of equipment used in research to combat leukemia;
(2) if he will take steps to exempt from value added tax purchases of equipment used in research to combat crippling diseases.
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§ Mr. HigginsThe effect of VAT is a factor to be taken into account in determining the levels of grants for medical research where these are funded from central Government sources. Charities sponsoring such research should benefit considerably from the substantial concessions made to charities in the last two Budgets.
§ Mr. Harold Walkerasked the Chancellor of the Exchequer if he will review VAT with a view to zero-rating ambulances specially built to meet the needs of disabled persons.
§ Mr. HigginsUnder Section 15 of the Finance Act 1972, local authorities may reclaim value added tax paid on their non-business activities. Value added tax charged on the supply of ambulances to the National Health Service is borne on the vote of the appropriate Department. Ambulances purchased privately and by charities are chargeable with VAT. Charities purchasing ambulances should generally benefit considerably from the substantial concessions made to charities in the last two Budgets.