VAT Relief: Business Donations

Lord Evans of Rainow Excerpts

Tuesday 19th May 2026 Lords Chamber

[Lord Livermore (Lab)]

I am grateful to the noble Baroness for her question. The short answer is yes, of course. We are hopeful that this new relief will help boost the supply of essential items to charities, enabling them to reach the people and communities who need them most. The relief will also make it easier for businesses to give surplus stock a second life, supporting families and communities across the UK and strengthening the circular economy by reducing waste and landfill. I hope very much that what the noble Baroness says is not the case. I understand the disappointment of some at not being eligible for this relief. It was important to maintain the structure of existing charity tax reliefs. However, as she asks, we will continue to monitor any potential impacts and accept the evidence. She might like to know that HMT officials will shortly be meeting with the sector to discuss this further.

[Lord Evans of Rainow (Con)]

My Lords, what assessment have the Government made of VAT registration for high street businesses such as mini-markets, vape shops and the like? I recently bought a phone charger and was surprised not to see a VAT receipt, and that business—there are many businesses like this—had significant turnover, well above the VAT threshold. If they are not registered for and not paying VAT, and are not paying national insurance, the minimum wage and corporation tax, that cannot be fair to those legitimate business that do pay their taxes.