Finance Bill — No Increase in VAT Rate for Charities — rejected — 13 Jul 2010 at 21:15

The majority of MPs voted against exempting charities' charitable activities from the January 2011 increase in VAT from 17.5% to 20%.

Liam Byrne, the Shadow Chief Chief Secretary to the Treasury proposed the following amendment^[1] to the Finance Bill^[2]:

• in clause 3, page 2, line 11, at beginning insert 'Subject to subsection (3A) below,'.

The proposed additional clause (3A) states:

• (3A) The amendment made by subsection (1) shall not have effect in relation to any supply made on or after 4 January 2011 to a charity where such supply is made to that charity solely in relation to its charitable non-business activities.'
• [1] Amendment sheet (Relevant amendment are no.s 35 & 36)
• [2] Finance Bill as at 1st July 2010 (Section 3 Rate of Value Added Tax)

Debate in Parliament | Source |