VAT News

Budget Update

19.06.2012

A number of announcements have been made on amendments to VAT proposals contained within the 2012 Budget.

Following a concerted campaign by high street retailers, the Treasury announced changes to the so called “pasty tax” on hot take away food.  After the amendment, food which is cooling down (rather than being kept hot) will be zero rated for VAT.

The Government will also delay a 5% VAT rate on static caravans to April 2013.  This is a drop from the increase to 20% originally proposed in the Budget.

In an attempt to allay some of the concerns over the introduction of 20% VAT on approved alterations for listed buildings, a further £30m has been committed to the listed places of worship grant scheme.  However, churches still have concerns that they will not be fully funded for the additional costs that the changes will bring.