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Orders of the Day — Finance Bill

Part of the debate – in the House of Commons at 3:49 pm on 20th April 2004.

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Photo of Dawn Primarolo Dawn Primarolo Paymaster General (HM Treasury) 3:49 pm, 20th April 2004

Simon Hughes was not present at the beginning of the debate and might not be here at the end, so I shall answer the point now. Let me make it absolutely clear, because misleading information has been given, that charitable donations have always been and remain VAT-free. As for the golden bond, the London marathon organisers and director have made it clear in writing that they prefer to charge the VAT because that enables them to reclaim VAT on the significant costs of mounting the event—I understand that almost £800,000 has been reclaimed. We can have a sensible discussion about the matter, but let us not mislead: no change has been made to the tax rules. The hon. Gentleman, who is standing in another election, is trying to mislead and he should not do so.