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House of Lords: Service Charges

Volume 717: debated on Friday 5 March 2010


Asked by

To ask the Chairman of Committees why the Refreshment Department charges VAT on the compulsory 12.5 per cent service charge for functions in the House of Lords when VAT is already charged on the cost of functions. [HL2357]

HMRC rules require that VAT be levied on compulsory service charges. However, the gratuities and service charge system is currently under review and the Refreshment Committee will consider the review's recommendations early in the new Parliament.