Personal Care Services: VAT
The question
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of reducing VAT on beauty and hair salons.
Answered by James Murray
VAT is the UK’s third largest tax. It is forecast to raise £180 billion in 2024/25, which funds public services. VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Exceptions to the standard rate have always been limited and balanced against affordability considerations.
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