Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will make it her policy to exempt donations to verified carbon offsetting projects from VAT.

Payments that are made voluntarily, without expectation of receiving goods or services in return, fall outside the scope of VAT. This is a core principle of the VAT system. As such, donations to verified carbon offsetting projects are not subject to VAT, and VAT should not be charged on these donations.