Written question asked by Martin Redmond (Labour), in the House of Commons. It was due for an answer on Monday, 14 October 1996. It was answered by Phillip Oppenheim (Conservative) on Monday, 14 October 1996 on behalf of the Treasury.

Treasury

Question: How much money will be collected annually in respect of recent legislation applying VAT to hot water supplied to (a) hospitals, (b) universities, (c) hospices and (d) colleges. - Inc figures.

Answer: Mr. Redmond: To ask the Chancellor of the Exchequer how much money will be collected annually in respect of recent legislation applying VAT to hot water supplied to (a) hospitals, (b) universities, (c) hospices and (d) colleges. [40115] Mr. Oppenheim: The point of this legislation was not to collect money, but to nip a tax avoidance scheme in the bud. Hospitals and universities are funded on the assumption that they incur VAT on fuel and power, but in fact some of these bodies have been among those who benefited from this avoidance scheme. The cost of the scheme, across all sectors and if left unchecked, could have reached £170 million or so. This figure represents tax at risk not tax raised.

Secondary information