Written question asked by Hugh Robertson (Conservative) on Friday, 26 November 2004, in the House of Commons. It was due for an answer on Thursday, 2 December 2004. It was answered by Baroness Primarolo (Labour) on Thursday, 2 December 2004 on behalf of the Treasury.

Treasury

Question: To ask Mr Chancellor of the Exchequer, whether there are circumstances in which governing bodies in sport have to pay VAT on money received from the Lottery. - (Holding answer 30 November 2004).

Answer: Hugh Robertson: To ask the Chancellor of the Exchequer whether there are circumstances in which governing bodies in sport have to pay VAT on money received from the lottery. [200664] Dawn Primarolo :[holding answer 30 November 2004]: Lottery grants to sports governing bodies will generally be outside the scope of VAT as they are generally not payment for any supplies. VAT incurred on purchases made using grant income can only be recovered to the extent that those purchases relate to the grantee's taxable business activities. VAT can not be recovered on purchases related to an organisation's exempt supplies or non-business activities.

Secondary information