§ Mr. WallaceTo ask the Chancellor of the Exchequer whether he will review the circumstances whereby payments made in respect of training supplied by a person who is not under direct contract with a training and enterprise council or local enterprise company are subject to value added tax; and if he will make a statement.
§ Mrs. Gillian Shephard[holding answer 15 July 1991]: I have no current plans to do so. Vocational training supplied by persons not contracted to training and enterprise councils or local enterprise companies is exempt if it is provided otherwise than for profit; otherwise it is chargeable with the standard rate of VAT. This has been the tax treatment of vocational training for many years.