This note discusses the way sanitary protection is charged VAT - more specifically, the Labour Government’s decision, announced in the March 2000 Budget, to introduce a 5% rate on sanitary protection, the lowest rate then permissible due to EU VAT rules, and the current Government’s announcement in the 2020 Budget that a zero rate will apply from 1 January 2021.
Documents to download
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Non-Domestic Rating (Public Lavatories) Bill 2019-21 (273 KB, PDF)
The Non-Domestic Rating (Public Lavatories) Bill 2019-21 was introduced into the House of Commons on 18 March 2020. Its Second Reading was originally scheduled for Monday 30 March 2020, but this was postponed due to the coronavirus pandemic. Second Reading has now been rescheduled for 16 July 2020.
This Bill is almost identical to the Non-Domestic Rating (Public Lavatories) Bill [HL] 2017-19, which was introduced into the House of Lords and had its Second Reading there on 10 July 2019. That Bill fell at the prorogation of Parliament in September 2019. Similar provisions were found in the Local Government Finance Bill 2016-17, which fell due to the snap general election of June 2017.
The Bill and its Explanatory Notes can be found on the Parliamentary website.
The Bill provides for public toilets to be exempt from business rates in England and Wales. The Government has committed separately to reimbursing billing authorities (district and unitary councils), which collect business rates, for any revenue foregone as a result of this measure. As a result, the Bill will require a Money Resolution in the House of Commons, to permit the Government to compensate billing authorities for the revenue foregone as a result of the mandatory relief.
Business rates are devolved to Scotland, Wales and Northern Ireland. This Bill extends to England and Wales, and has effect in both England and Wales. As a result, the National Assembly for Wales would need to pass a Legislative Consent Motion for the Bill.
Documents to download
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Non-Domestic Rating (Public Lavatories) Bill 2019-21 (273 KB, PDF)
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