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Written question asked by Michelle Welsh (Labour) on Thursday, 30 January 2025, in the House of Commons. It was due for an answer on Monday, 3 February 2025. It was answered by James Murray (Labour) on Thursday, 6 February 2025 on behalf of the Treasury.

Charities: VAT Zero Rating

Question

To ask the Chancellor of the Exchequer, whether her Department has made an assessment on the potential merits of extending eligibility for the zero-rate VAT for charities to include flood defence equipment.

Answer

To protect the country from the devastating impacts of flooding, the Government has committed £2.4 billion over the next two years to improve flood resilience by maintaining, repairing and building flood defences.

Through this funding the Government provides direct support to communities facing flooding, and therefore we have no plans to change the VAT treatment of flood defence equipment for charities. VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services. VAT is the UK’s second largest tax forecast to raise £171 billion in 2024/25. Taxation is a vital source of revenue that helps to fund vital public services including schools and hospitals.

Secondary information

Type
Written question
Reference
27815
Session
2024-26
Subjects
Charities Flood control Equipment VAT zero rating
Link
View this Written question on www.parliament.uk