§ Matthew TaylorTo ask the Chancellor of the Exchequer what the cost would be to HM Customs and Excise of treating fees paid by individuals to nursing homes and registered residential homes for the elderly as VAT zero rated; and if he will make a statement. [4640]
§ Mr. BoatengDetails of such costs are not readily available. The Government are of the clear view that care of vulnerable people provided by residential homes should not be subject to VAT. At present, fees charged by nursing homes and registered residential homes for the elderly are exempt from VAT. European Community agreements prevent us from extending the zero rate of VAT to residential care.