§ Mr. Gouldasked the Chancellor of the Exchequer what recent representations he has received seeking exemption of the British Legion from liability to value added tax.
§ Mr. BrookeSince May 1985 my colleagues and I have received 77 letters about the VAT position of the Royal British Legion. Some two-thirds of these have been concerned about the supposed imposition of VAT on Remembrance Day poppies. As was made clear in replies to the hon. Member for Portsmouth, South (Mr. Hancock) on 19 November at columns 91–2 and to my hon. Friend the Member for Bournemouth, East (Mr. Atkinson) on 15 November at column273 there is no VAT on the giving of a token in recognition of a donation nor on the donation itself. Like other charities, the Royal British Legion bears VAT which it cannot recover on its non-business purchases; in this respect the treatment of charities in the United Kingdom is the same as in the rest of the European Community.