|Rate||% of VAT||What the rate applies to|
|Standard||20%||Most goods and services|
|Reduced rate||5%||Some goods and services, e.g. childrens car seats and home energy|
|Zero rate||0%||Zero-rated goods and services, e.g. most food and childrens clothes|
The standard rate of VAT increased to 20% on 4 January 2011 (from 17.5%).
Some things are exempt from VAT, eg postage stamps, financial and property transactions.
The VAT rate businesses charge depends on their goods and services.
Check the rates of VAT on different goods and services.
The table below provides an overview of the historic rates of VAT that has been applied since VAT was introduced in 1973.
|1 April 1973||10%|
|29 July 1974||8%|
|18 June 1979||15% (replaces all previously standard and higher rated supplies)|
|1 April 1991||17.5%|
|1 Dec 2008||15%|
|1 Jan 2010||17.5%|
|4 Jan 2011||20%|
|1 April 1994||8% (covered supplies of fuel and power)|
|1 Sept 1997||5% (extended to cover other supplies, with later other subsequent extensions)|
|18 Nov 1976||25% (covered petrol but not derv)|
|1 May 1975||(covered domestic electrical appliances, radios, TVs, hi-fis, pleasure boats, aircraft, towing caravans, photographic equipment, furs and jewellery)|
|12 April 1976||12.5%|
|18 June 1979||Abolished (standard rate increased from 8% to 15% to cover higher rate goods)|
Please feel free to contact us if you require any further information.
LEGAL NOTICE AND WARNING:
The information displayed in this section should not be used as a definitive guide, since individual circumstances may vary. Specific advice should be obtained where necessary. We accept no responsibility of use of above information on your own.