§ Mr. Bob RussellTo ask the Chancellor of the Exchequer for what reason Customs and Excise ruled that value added tax must be charged by Age Concern Essex to those receiving the home support service; when the ruling was implemented; and if he will give an instruction that VAT should not be levied. [55800]
§ Dawn PrimaroloWelfare services (including care provided to elderly people) have been VAT exempt when supplied by charities on a not-for-profit basis since 1986. Customs' interpretation of the application of VAT legislation is that household chores or errands do not qualify for VAT exemption unless they are provided as an incidental part of a package of medical or personal care. This ruling was given to Age Concern Essex on 24 August 1998, to be effective from that date. Customs are now reviewing their interpretation of the exemption for charity welfare services following a recent decision of the VAT and Duties Tribunal.