The standard rate of VAT increased from 17.5 per cent to 20 per cent on 4 January 2011.
Some things are exempt from VAT (e.g. postage stamps, financial and property transactions).
HM Revenue & Customs lists the rates of VAT on different goods and services (see www.hmrc.gov.uk).
- Standard rate (20%) - this rate applies to most goods and services.
- Reduced rate (5%) - this rate applies to some goods and services, e.g. children’s car seats and home energy.
- Zero rate (0%) - this rate applies to zero-rated goods and services, e.g. most food and children’s clothes.
- The above information is reprinted with kind permission from GOV.UK. Please visit www.gov.uk for further information.
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