VAT on sanitary products
While the government makes the case in the EU for a zero rate of Value Added Tax (VAT) for sanitary products, a new £15 million annual fund equivalent to the VAT raised each year on sanitary products will support women’s charities. The government will make an initial donation totalling £5 million to support The Eve Appeal, SafeLives, Women’s Aid and The Haven. Further donations and recipients will be announced at Budget 2016. The fund will run over the course of this Parliament, or until the UK can apply a zero rate.
Investing in skills to equip young people for the future
As part of the government’s one-off restructuring of post-16 education and training, Sixth Form Colleges in England will be given the opportunity to become academies, allowing them to recover their non-business VAT costs. They will have the option of joining a Multi Academy Trust if they choose to, which will help drive up standards and improve efficiency of 16-19 education by enabling further collaboration between schools and Sixth Form Colleges.
VAT reduced rate for energy saving materials
The government will consult on legislation for Finance Bill 2016 to ensure the reduced rate of VAT on energy saving materials is maintained in line with EU law. (Finance Bill 2016)