Consumer Goods: Repairs and Maintenance

(asked on 22nd March 2022) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has been made of the potential merits of offering VAT relief on the repair of personal and household goods to support sustainability and circular economy commitments.

Answered by
Lucy Frazer Portrait
Lucy Frazer
Secretary of State for Culture, Media and Sport
This question was answered on 30th March 2022

The current VAT treatment of the repair of personal and household goods is subject to the standard rate of VAT at 20 per cent, as is the case for the vast majority of goods and services.

Introducing any new VAT relief would come at a cost to the Exchequer, and the Government has received over £50 billion worth of requests for relief from VAT since the EU referendum.

Although the Government keeps all taxes under review, introducing a new relief on the repair of personal and household goods would impose additional pressure on the public finances, to which VAT makes a significant contribution. VAT raised around £130 billion in 2019/20, and helps to fund key spending priorities, including health, education, and defence.

Reticulating Splines