HC Deb 11 July 2002 vol 388 c1107W
Mrs. Helen Clark

To ask the Chancellor of the Exchequer if he will introduce a VAT refund scheme for charities; and if he will make a statement. [68877]

John Healey

Charities already benefit from a range of special VAT reliefs, but the Government recognise that irrecoverable VAT still represents a problem for some charities.

While we remain alive to opportunities to modernise and update the VAT system for charities wherever possible, this remains a difficult issue. The 1999 Review of Charity Taxation gave careful consideration to a scheme to refund charities' irrecoverable VAT, but concluded that for reasons of principle and cost this should not he pursued.

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