Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will confirm that ticket sales for prize draws offering both paid and free entry routes – as set out by the voluntary Code of Conduct published by the Department for Culture, Media and Sport – are subject to VAT under the Value Added Tax Act 1994.

HMRC confirm that prize draws offering both paid and free entry routes are not eligible for VAT exemption and paid entries will be subject to VAT at the standard rate of 20%.