MEP backs call to exempt land rescue teams from VAT

Air Ambulance also covered in appeal for tax relief.

Lib Dem Euro MPs including county and West Midlands MEP Phil Bennion have launched a campaign to exempt mountain and lowland rescue teams and the Air Ambulance from paying VAT.

The Lib Dems are pressing EU Commissioner Šemeta to extend the existing VAT exemption for sea rescue services to inland rescue teams, as part of a wider exemption for all Search and Rescue organisations.

Sea rescue services such as the RNLI currently benefit from a wide-ranging VAT exemption. Under a proposal drawn up by North West Lib Dem MEP Chris Davies and backed by Phil Bennion, the EU would end the current inequality of treatment and provide a blanket exemption from VAT for rescue teams whether on land or sea.

The move would help simplify the removal of VAT obligations from charitable search and rescue groups including the West Midlands Search and Rescue (WMSAR) and the Midlands Air Ambulance.

Phil Bennion MEP said: “The emergency services rely on the help of volunteers and charities to carry out search and rescue activities and save lives across the country, not just at sea. Inland rescue services are a public good which should not be taxed, but are often provided by small charities. Even where VAT is already reclaimed, the procedures can be cumbersome.

“VAT rates are set by member states but the principle of what is covered is agreed at EU level to make sure there is a level playing field in the single market.  Lib Dem MEPs want to see member states given the right to exempt all search and rescue activities from VAT if they so decide. There is no reason why this should only apply to sea-based rescue services. Rescuing someone stranded on a mountain or swept away in a river is just as important.

“There should also be no difficulty at all in ensuring that the Midlands Air Ambulance, a charitable organisation, is not affected by VAT for fuel or other costs. The exemption should be automatic.

“In our region, West Mercia police also rely on land-based help from volunteers from West Midlands Search and Rescue (WMSAR), helping save lives in remote areas and assisting searches for people swept away on major rivers like the Severn or more general missing persons inquiries.

“The police and fire brigade need volunteers to do this properly with the best possible training and equipment, which doesn’t come cheap. In Warwickshire, the probationary Search and Rescue team is training hard in order to be fully recognised as a Lowland Rescue Team, raising funds and recruiting volunteers. We also have Midlands Cave Rescue, a team of 46 expert potholer volunteers from Dudley and Shropshire who help out with cave rescues across the country. 

“None of the fundraising for this lifesaving work should be held back by paying VAT. The ability of the small charities to reclaim VAT can be limited. A blanket exemption would simplify the process and help make sure donations are used rapidly and in full to pay for equipment and fuel.”

Front image (c) WMSAR