§ Mrs. Helen ClarkTo 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 HealeyCharities 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.