Sunscreens: VAT
The question
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of removing VAT from sunscreen products on public health outcomes; and whether she plans to reclassify sunscreen products with SPF protection as essential health products.
Answered by Dan Tomlinson
VAT rules do allow drugs and medications that are dispensed by a registered pharmacist against a prescription issued by a qualifying health professional to be zero rated for VAT. High-factor sunscreen is already on the NHS prescription list for certain conditions and is provided VAT-free when dispensed by a pharmacist to these patients. However, items which are not prescribed by a health professional and dispensed by a pharmacist do not qualify for the relief, even though they may have health benefits.
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 third largest tax, forecast to raise £180 billion in 2025/26.
Tax breaks reduce the revenue available for vital public services and must 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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