Wills: VAT:Written question - 284798

(Portsmouth South)
Asked on: 02 September 2019
Wills: VAT
To ask the Chancellor of the Exchequer, what assessment she has made of the potential effect on the economic wellbeing of charitable organisations of removing VAT from the cost of writing wills that include a charitable donation.
Answered by: Mr Simon Clarke
Answered on: 09 September 2019

The costs for writing wills that include a charitable donation are subject to the standard rate of VAT. Under the current EU VAT rules, it is not possible to zero rate or exempt these costs from VAT. Whilst the UK remains a member of the EU, it must comply with the rights and obligations that membership entails. This includes the application of EU VAT rules.

The Government is clear that tax is a sovereign matter and that it will be open to us to change in the future or include in any negotiations with the EU. While there might be more flexibility in the future, removing VAT on the cost of writing wills would need to be measured carefully and balanced against wider policy, economic and fiscal considerations.

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