HL Deb 19 March 2001 vol 623 cc128-9WA
Lord Milner of Leeds

asked Her Majesty's Government:

Whether the shareholder of the New Millennium Experience Company will explain whether VAT is payable on the £1 million given to the Millennium Dome Faith zone by the Hinduja Foundation.[HL 1291]

The Minister of State, Cabinet Office (Lord Falconer of Thoroton)

The New Millennium Experience Company (NMEC), having recently reviewed its papers on the Hinduja Foundation's contribution of £1 million to the Faith zone, has concluded that VAT is chargeable in respect of that contribution. NMEC reached this conclusion on the basis that the allocation of free tickets represented a benefit. The company has made a voluntary disclosure to HM Customs and Excise. NMEC has now brought this payment into account for VAT purposes and will make the appropriate payment when all related aspects are agreed with HM Customs and Excise. NMEC is satisfied that in respect of the earlier treatment of the Hinduja Foundation's contribution and the later allocation of tickets there was no deliberate attempt by NMEC staff to avoid VAT. There was an innocent error which, having been identified, is now being corrected.