§ Mr. Edward DaveyTo ask the Chancellor of the Exchequer whether public authorities are able to reclaim VAT on leased vehicles; and if he will make a statement. [35847]
§ Mr. BoatengIn general, public authorities which draw their funding directly from local taxation are able to recover the VAT incurred on all purchases relating to their statutory non-business activities under the section 33 VAT refund scheme. Except where specifically covered by the section 41 (3) refund scheme for certain contracted-out services, the VAT incurred by bodies which draw their funding directly from central Government may not generally be recovered, and is instead taken into account when that funding is allocated.