To ask the Chancellor of the Exchequer what advice his Department has received on whether the exemption from VAT on services provided granted to local leisure trusts is allowable under the European Union's 6th VAT Directive. (193004)

HM Revenue and Customs regularly receives legal and other advice in relation to its administration of the VAT rules. The VAT exemption for supplies of certain services closely linked to sport or physical education by non-profit making bodies is fully consistent with Article 132(1)(m) of the EC Principal VAT Directive.