§ Mr. David NicholsonTo ask the Chancellor of the Exchequer how much value added tax was paid by charities in the latest financial year for which figures are available; and to how much this amount is equivalent in terms of(a) an increase in the standard rate of income tax and (b) an increase in the current rate of value added tax.
§ Sir John CopeInformation about the amount of VAT borne by charities is not collated centrally, but it has been recently estimated that charities pay up to £300 million in VAT each year. This amount is equivalent to approximately 0.2p on the basic rate of income tax or a change of 0.1 percentage point in the standard rate of VAT.