Hospitality Industry: VAT

Treasury written question – answered on 17th November 2020.

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Photo of Patrick Grady Patrick Grady SNP Chief Whip

To ask the Chancellor of the Exchequer, if he will extend the temporary 5 per cent reduced rate of VAT for hospitality, hotel and holiday accommodation businesses for the 2021-22 financial year.

Photo of Jesse Norman Jesse Norman The Financial Secretary to the Treasury

The Government initially cut the rate of VAT applied to hospitality, accommodation and attractions, from 20 per cent to 5 per cent, for a period of six months to 12 January 2021.

The Government extended this relief in September 2020, and it will now end on 31 March 2021. The reduced rate aims to support the cash flow and viability of over 150,000 businesses in the affected sectors and will help protect 2.4 million jobs.

The Government keeps all taxes under review.

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