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Written question asked by Stephen Morgan (Labour) on Monday, 2 September 2019, in the House of Commons. It was due for an answer on Wednesday, 4 September 2019. It was answered by Simon Clarke (Conservative) on Monday, 9 September 2019 on behalf of the Treasury.

Wills: VAT

Question

To ask the Chancellor of the Exchequer, what assessment she has made of the potential effect on the economic wellbeing of charitable organisations of removing VAT from the cost of writing wills that include a charitable donation.

Answer

The costs for writing wills that include a charitable donation are subject to the standard rate of VAT. Under the current EU VAT rules, it is not possible to zero rate or exempt these costs from VAT. Whilst the UK remains a member of the EU, it must comply with the rights and obligations that membership entails. This includes the application of EU VAT rules.

The Government is clear that tax is a sovereign matter and that it will be open to us to change in the future or include in any negotiations with the EU. While there might be more flexibility in the future, removing VAT on the cost of writing wills would need to be measured carefully and balanced against wider policy, economic and fiscal considerations.

Secondary information

Type
Written question
Reference
284798
Session
2017-19
Transferred
Yes
Subjects
Charitable donations VAT Wills
Link
View this Written question on www.parliament.uk