Take-away Food: VAT
The question
To ask the Chancellor of the Exchequer, whether she has made an assessment of the impact of the current 20% VAT rate on independent hot food retailers; and if she will consider aligning the VAT treatment of hot takeaway food with that of cold takeaway food.
Answered by Dan Tomlinson
VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. VAT is the UK's second largest tax, forecast to raise £180 billion in 2025/26.
Hot takeaway food is subject to the 20 per cent standard rate of VAT. This ensures parity of treatment with food sold in restaurants, which is also subject to the standard rate. A tax relief for hot takeaway food would come at a cost to the Exchequer, reducing the revenue available for vital public services, and would have to represent value for money for the taxpayer. Exceptions to the standard rate have always been limited and balanced against affordability considerations.
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