MSE News

Emergency Budget: VAT to rise to 20%

Emergency Budget: VAT to rise to 20%

VAT will rise from 17.5% to 20% in January, the Chancellor revealed this afternoon.

Items such as food and children's clothing will continue to be exempt from VAT.

The Government says the increase will raise £13.5 billion a year by 2014/15. An item that currently costs £100 that is subject to VAT will cost £102.13 next year.

Some estimates have suggested the hike will cost households around £500 a year.

The tax is paid for by retailers on the majority of goods sold but is usually passed onto consumers.

Further reading/Key links

Cut costs: High Street Haggling, Cheap Online Shopping

Comment/Discuss

Discuss this MSE news story: VAT to rise


Read more news on...

Bookmarks

Cheap Travel Money

Find the best online rate for your holiday cash with MoneySavingExpert's TravelMoneyMax.