Written question asked by David Drew (Labour) on Wednesday, 27 October 2004, in the House of Commons. It was due for an answer on Monday, 1 November 2004. It was answered by Baroness Primarolo (Labour) on Monday, 1 November 2004 on behalf of the Treasury.

Treasury

Question: To ask Mr Chancellor of the Exchequer, if he will make a statement on the ability of town and parish councils administering funds on behalf of arm's length projects or organisations which are largely funded by Government to reclaim VAT expenditure incurred on behalf of those projects or organisations.

Answer: Mr. Drew: To ask the Chancellor of the Exchequer if he will make a statement on the ability of town and parish councils administering funds on behalf of arm's length projects or organisations which are largely funded by Government to reclaim VAT expenditure incurred on behalf of those projects or organisations. [195294] Dawn Primarolo: Local authorities can reclaim the VAT incurred on goods and services they purchase in connection with either their taxable activities or their non-business activities. There are long-established guidelines on the recovery of VAT when other organisations are involved as well. To qualify for refunds in those circumstances, a local authority should place the order for the purchase; receive the goods or services ordered; be in receipt of a VAT invoice addressed to it; and pay for the purchase from its own funds.

Secondary information