Family finances
Value added tax (VAT)
VAT is a tax paid on most supplies of goods and services. The standard rate of VAT is 17.5% but there is a reduced rate of 5% for some classes of goods/services such as domestic power and fuel. There is a zero rate (VAT is charged at 0%) for certain classes of goods/services, whilst some supplies of goods and services are exempt from VAT.
The following is a list of some of the most common non standard rates.
Reduced rate
Domestic fuel & power
Children’s car seats
Feminine hygiene products
Certain residential conversionsFood
Construction of new homes
Passenger transport
Books, newspapers, magazines
Children’s clothing and footwear
Water and sewerage services
Prescription medicines
Supplies to charities
Ships and aircraft (size limits apply)
Supplies to the disabled
Zero rate
Domestic fuel & power
Children's car seats
Feminine hygiene products
Certain residential conversions
Exempt
Rent (can elect to charge VAT)
Private education
Health services
Postal services
Burial & cremation
Finance & insurance
Betting, gaming & lottery
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Where next?
Within Overview of the UK personal tax system...
- Income tax
- National insurance
- Capital gains tax
- Inheritance tax
- Stamp duty
- Corporation tax
- Miscellaneous taxes
Within Family finances
- Managing your paperwork
- Managing your money
- Self assessment and tax returns
- Caring for elderly relatives
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