Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of zero-rating for VAT school uniforms designed for children aged 14 or over.

Under the current VAT rules, all children’s clothing and footwear designed for young children who are less than 14 years of age, including school uniforms, attract a zero-rate of VAT, meaning that no VAT is charged on the sale of these items.

In addition, certain school uniform items may also benefit from a zero rate of VAT irrespective of size. For instance, garments which bear a prominent logo, crest or badge identifying them as part of the official uniform of schools catering exclusively for children under 14 years of age can be zero-rated.

The UK is one of only two countries among the 37 OECD member countries to maintain a VAT relief for children’s clothing, which costs the Exchequer £2 billion per year.

Going further would impose additional pressure on the public finances, to which VAT makes a significant contribution. Whilst we have no current plans to extend the existing zero rate, we nevertheless keep all taxes under review.