To ask the Chancellor of the Exchequer what steps he has taken in respect of infringement proceedings instigated against the United Kingdom by the European Union regarding the UK’s refusal to allow businesses from outside the European Union in the financial services and insurance industries to reclaim value-added tax incurred on goods and services from UK suppliers; and if he will make a statement. (154841)

The Government believe that UK VAT legislation in this area properly implements EU VAT Directives. The legislation also conforms with a clear decision of the UK Court of Appeal on the meaning of the relevant EU law. The UK will therefore contest the infringement proceedings.