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Volume 981: debated on Monday 24 March 1980

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asked the Chancellor of the Exchequer if he will give an estimate of the cost to the Revenue in a full year of exempting purchases by registered charities from value added tax.

Some purchases by certain charities are already relieved from VAT, but for those purchases which are taxable separate information about charities is not available. However, it is estimated that in a full year at the current rate of VAT the tax paid on purchases by welfare and charitable services, which are classified together for VAT, would be about £7 million.