§ Mr. Temple-Morrisasked the Chancellor of the Exchequer what was the total amount of value added tax received in the financial year 1979–80 from repairs to churches.
§ Mr. Peter ReesI regret that the information is not available since the returns do not distinguish between VAT charged on repairs to churches and other building work.
§ Mr. McQuarrieasked the Chancellor of the Exchequer if he will review and, if necessary, seek to amend the Value Added Tax (Competitions) Order 1980 in items 1 and 2 of the exemption group created by that order so as to ensure that entry fees in rallies such as the Scottish rally are included and qualify for exemption; and if he will make a statement.
§ Mr. Peter Rees[pursuant to his reply, 16 January 1981]: The terms of items 1 and 2 of the exemption group created by the Value Added Tax (Competitions) Order 1980 were considered most carefully before the order was made and laid. It was never intended that the relief should apply to profit-making ventures or to organisations not established for purposes of sport or physical recreation. There are therefore no plans to make an amending order, although the precise scope of the relief, as is the case with VAT reliefs generally, will be reviewed from time to time in the light of how it is operating in practice. I shall write to my hon. Friend about the particular case of the Scottish rally.
§ Mr. Freudasked the Chancellor of the Exchequer whether he is satisfied with the fairness of the arrangement whereby value added tax is charged in respect of entering a horse in a show but not if the horse jumps or runs; and if he will make a statement.
§ Mr. Peter ReesI shall let the hon. Member have a reply as soon as possible.