Written question asked by Baroness Randerson (Liberal Democrat) on Wednesday, 16 October 2024, in the House of Lords. It was due for an answer on Wednesday, 30 October 2024. It was answered by Lord Livermore (Labour) on Tuesday, 29 October 2024 on behalf of the Treasury.

Vehicles: VAT

Question: To ask His Majesty's Government what consideration they have given to extending an exemption of VAT to (1) all, or (2) some, publicly funded vehicle categories; and whether they have any plans to review the current position.

Answer

Public sector bodies pay VAT in the same way that businesses and consumers do. As their activities are 'non-business', they are not ordinarily able to reclaim VAT incurred.

However, specific provisions in the VAT Act mean that most public bodies can already claim refunds for some or all of the VAT they incur in meeting their statutory responsibilities.

The government continues to keep all taxes under review.

Secondary information

Type: Written question
Reference: HL1685
Session: 2024-26
Subjects: VAT Vehicles
Link: View this Written question on www.parliament.uk

Vehicles: VAT

Secondary information

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