§ Mr. HardyTo ask the Chancellor of the Exchequer if he will reconsider the arrangements which lead to the imposition of VAT upon charges incurred in the care of574W the dependent elderly; and if he will seek to ensure that the United Kingdom is permitted such fiscal relief through derogation from the EC sixth VAT directive.
§ Sir John Cope[holding answer 23 November 1992]: The United Kingdom has always exempted from VAT the supply of services by a person registered or enrolled in any of the medical or paramedical registers. The provision of care by a local authority or charity otherwise than for profit is also exempt from VAT. Domiciliary care and domestic help supplied on a commercial basis is in principle liable to VAT at the standard rate subject to the turnover of the supplier exceeding the small trader registration threshold. My right hon. Friend the Chancellor of the Exchequer has no plans to seek any amendment of the law. The EC sixth VAT directive contains no provision for derogations of the type suggested by the hon. Member.