§ Mr. Majoraskedthe Chancellor of the Exchequer whether he has received representations from the Association of Show and Agricultural Organisations concerning the apparent obligations on agricultural and breed societies to charge value added tax on entry fees for exhibitions held to improve the quality of breeding; and if he will make a statement upon the rationale for such a charge.
§ Mr. Peter ReesYes, representations have been received about the value added tax charge on entry fees to livestock and other competitions organised by agricultural show societies. As regards the VAT liability of competitions generally, I refer my hon. Friend to my reply to the right hon. Member for Roxburgh, Selkirk and Peebles (Mr. Steel) on 11 November.—[Vol. 992, c. 164]. In relation to livestock competitions in particular, a VAT registered farmer will be able, subject to the normal rules, to reclaim from Customs and Excise any tax incurred on competitions entered for the purposes of his business.