News Release

22nd October 2002

VAT VICTORY FOR ARBORETUM

Customs and Excise have finally backed down over VAT claims against the National Memorial Arboretum in Alrewas near Lichfield. This has resulted in a tax saving to the charity of £100,000. "This was the very worst form of stealth tax" says Michael Fabricant. "Customs and Excise were claiming that donations of trees by war widows and others to the National Arboretum to remember the war dead is a 'taxable supply' and should be charged VAT just as if they were buying trees from a garden centre. This was outrageous and I am delighted that Government Ministers saw sense and co-operated with me in persuading Customs to drop the VAT claim. This is indeed a victory for our war dead as well as for common sense."

The Founder of The Arboretum, David Childs, says: "I am delighted with the outcome of this case. I had no doubt as to the rightness of our cause but for our case to succeed it needed the very active involvement, at ministerial level, of Michael Fabricant, to represent the logic of our position, together with the technical arguments advocated by Deloitte & Touche to back these up. In the end Customs & Excise proved most willing to listen and very determined to end up with a solution acceptable to both parties."