§ Baroness Anelay of St Johnsasked Her Majesty's Government:
What is the legal basis on which they charged VAT at 17.5 per cent on their grant of £14.2 million to the British Tourism Authority (BTA) and £3.8 million to the English Tourism Council (ETC); and whether the Chancellor of the Exchequer has the power to waive the collection of the VAT from BTA and the ETC; and [HL454]
What contingency plans have been made by the Department for Culture, Media and Sport to ensure that the British Tourism Authority (BTA) and the English Tourism Council (ETC) are compensated in full for the amount of VAT which they have paid to the Treasury on the Department for Culture, Media and Sport grant of £14.2 million made to the BTA and of £3.8 million made to the ETC. [HL455]
§ Lord McIntosh of HaringeyThe British Tourism Authority and the English Tourism Council were not charged VAT on these grants. Their grant income is and remains outside the scope of VAT.