§ Tony WorthingtonTo ask the Chancellor of the Exchequer (1) what representations he has received from the hospice movement about the taxation it pays; and if he will make a statement; [1040]
(2) what changes would need to be made to the constitutional framework of hospices for them not to qualify for the payment of VAT. [1043]
§ Mr. BoatengThe care services of a hospice are not chargeable with VAT. Charitable hospices benefit from a number of specific VAT reliefs on purchases which they make but, in accordance with the basic principles of VAT, they cannot recover VAT paid on purchases relating to the their VAT exempt or "non-business" activity. This issue was considered in response to representations from hospices and other charities during the recent Review of Charity Taxation.
§ Tony WorthingtonTo ask the Chancellor of the Exchequer what recent representations he has received about the liability of hospices for VAT; and if he will make a statement. [1345]
§ Mr. BoatengRepresentations were received from hospices at the time of the review of charity taxation. The care services of a hospice are not chargeable with VAT. Charitable hospices benefit from a number of specific VAT reliefs on purchases they make but, in accordance with the basic principles of VAT, they cannot recover VAT paid on purchases relating to their VAT exempt or "non-business" activity.
§ Tony WorthingtonTo ask the Chancellor of the Exchequer (1) how much, and what proportion, of the income of hospices in each of the past 10 years is derived from(a) charitable giving and (b) Government sources; [1042]
(2) how much income he received in VAT receipts from hospices in each of the past 10 years; [1039]
(3) what calculation he has made of the amount of money that the hospice movement saves the National Health Service because of its fund-raising efforts. [1041]
§ Mr. BoatengGovernment Departments have no centrally gathered information available.