Question to the HM Treasury:

To ask His Majesty's Government whether they plan to reduce VAT on reused, refurbished and repaired goods to incentivise circular consumer practices.

Second-hand goods may already benefit from a reduced rate of VAT under the VAT margin scheme. Sellers of eligible goods are not required to charge VAT on the full final sale price of the good, but instead on the difference between the amount paid for the item and the final sale price.

VAT is the UK’s second largest tax, forecast to raise £171 billion in 2024/25. Tax breaks reduce the revenue available for vital public services and must represent value for money for the taxpayer. Exceptions to the standard rate have always been limited and balanced against affordability considerations.

The government has no plans to further reduce VAT on reused, refurbished and repaired goods.