§ Mr. SayeedTo ask the Prime Minister what is Her Majesty's Government's policy towards involvement by the education system in business and vice versa; what is her assessment of the mutual advantages of such a relationship; what are the implications for this policy of the decision by Her Majesty's Customs and Excise to charge value added tax on gifts by business to universities; what steps she proposes to take to reverse that decision; and if she will make a statement.
§ The Prime MinisterThe Government have introduced a wide range of initiatives which enable the education system at all levels to develop effective continuing partnerships with business, to provide a mutual awareness of opportunities and transfer of knowledge and expertise.
There is no VAT on unconditional gifts of money to universities. Nor does the mere acknowledgement of such support attract VAT, for example the naming of a university chair after the donor. But where payment is conditional upon the university supplying clearly identifiable benefits in return, VAT is chargeable. This has always been the position and each case is considered on its particular facts.