Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made of the clarity of Government guidance for private companies on the charging of VAT on loans.
Guidance on the VAT treatment of loans and other credit is set out in “VAT Notice 701/49: finance”, available on the gov.uk website. As provided for in the VAT Act 1994, the guidance sets out that loans and grants of credits are exempt from VAT.