Budget 2012 announced a consultation (closing on 4th May 2012) on proposed legislation aimed at ensuring that similar products are taxed consistently. The consultation also covers proposed changes aimed at closing loopholes.
Put simply the intention underpinning this series of measures is the levelling of the “playing field” in a number of areas. The result should be to ensure that similar products (within the areas listed below) will be taxed in the same way:
- Catering – Hot Take Away Food and “Premises”;
- Sports Nutrition Drinks; and
- Self Storage.
The proposal to close loopholes (and thereby prevent avoidance) envisages VAT being applied to the following activities:
- Hairdressers’ Chair Rentals;
- Holiday Caravans; and
- Approved Alterations to Listed Buildings.