8 July 2020
Daniel Lyons, head of tax policy at Deloitte, comments on the Chancellor’s cut to the VAT rate:
“The sector specific VAT rate cut to 5% is aimed at boosting business and protecting jobs in two of the sectors hardest hit by the COVID-19 pandemic. Whilst the cut will be welcomed by many, pubs and bars may be disappointed that it has not been extended to the sale of alcoholic drinks.
“The rate change could mean a range of savings for consumers. For a pub meal costing £45 without alcohol, a couple could expect to save £5.62, while a £54.50 one night stay at a hotel in a family room would see a saving of £6.81. A family ticket to a theme park or zoo costing £144 could see a saving of nearly £18.”
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