§ Mr. DrewTo ask the Chancellor of the Exchequer if he will make a statement on the situation of local authorities who have transferred their housing stock and who have to pay VAT on the service arrangements involved in that transfer. [161043]
§ John HealeyA local authority is entitled to recover any VAT incurred on professional services supplied to it in connection with arranging the transfer of housing stock to the private sector. VAT can also be recovered on certain improvement works the purchaser may require the local authority to carry out as a contractual condition of purchase.