Autumn Statement 2023: VAT

The Chancellor announced the following measures on VAT in his 2023 Autumn Statement.

Women’s sanitary products

From 1 January 2024:

• Legislation will be introduced to extend the scope of the current VAT zero rate relief on women’s sanitary products to include reusable period underwear.
• Currently, reusable period underwear is standard-rated for VAT. 

VAT energy-saving materials relief

From February 2024:

• Legislation will be introduced to expand the VAT relief available on the installation of energy-saving materials by extending the relief to additional technologies, such as water-source heat pumps, and to bring buildings used solely for a relevant charitable purpose within scope.
• See Energy-Saving Materials

Interpretation of VAT and excise law

• Legislation in Autumn Finance Bill 2023 will clarify how VAT and excise law should be interpreted in light of changes made by the Retained EU Law (Revocation and Reform) Act 2023 (REUL Act). 
• The measure confirms that, in relation to VAT and excise law, in line with the REUL Act, it will no longer be possible for any part of any UK Act of Parliament or domestic subordinate legislation to be quashed or disapplied on the basis that it was incompatible with EU law.
• It also ensures that UK VAT and excise legislation continues to be interpreted as Parliament intended, drawing on rights and principles that currently apply in interpreting UK law.

VAT treatment of private hire vehicles

• The government will consult in early 2024 on the impacts of the July 2023 High Court ruling in Uber Britannia Ltd v Sefton MBC.
• See Agents and principals

Useful links

Autumn Statement 2023: At a glance
The Chancellor, Jeremy Hunt, presented his Autumn Statement 2023 speech on Wednesday 22 November. This is our 'At a glance' summary of the key tax announcements and measures.