§ Mrs. Chalkerasked the Chancellor of the Exchequer what would be the estimated extra cost of zero-rating for VAT purposes (a) gifts to charities from registered traders, (b) non-business expenditure by charities, and (c) the sale of all goods for the relief of the distressed.
§ Mr. Robert SheldonSales of donated goods by charities established primarily for the relief of distress are already zero-rated for VAT purposes. No information is available as to the extra cost of zero-rating all gifts to charities. Nor can any reliable estimate be made of the cost of zero-rating the non-business activities of charities, but it could well substantially exceed £1 million a year in tax.