Take-away Food: VAT
The question
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of differing VAT policies for dine-in establishments and takeaway-only premises on small takeaway food businesses in coastal and tourist areas, including those in Northern Ireland.
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 £189 billion in 2026/27.
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. Exceptions to the standard rate have always been limited and balanced against affordability considerations.
Across the UK from 25 June to 1 September the Government is introducing a temporary reduced rate of VAT on children's menu meals and eligible family attractions.
This temporary VAT relief is focused on activities especially targeted at children and families, keeping the package targeted and affordable. Including takeaways would have significantly increased the cost of the package, and this decision means the Great British Summer Savings is more closely targeted at family days out.
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