Taxation of state pension
The state pension is liable to income tax, though pensioners are unlikely to pay tax in practice if their only income is the state pension.
Documents to download
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Debate on VAT on sunscreen products (181 KB , PDF)
European VAT law limits the discretion of Member State to set lower VAT rates on individual goods and services. With the UK having left the EU, EU VAT law no longer imposes limitations to VAT reforms in the UK.
In the 2020 Budget the then Chancellor Rishi Sunak announced with the UK’s exit the Government would introduce a new zero rate of VAT on women’s sanitary protection. This new zero rate came into force from 1 January 2021. Since then the Government has not made any substantial changes to the range of VAT reliefs, although the Treasury has received many requests for changes in the VAT treatment of various goods and services.
In her request to the Backbench Business Committee for a debate on VAT on sunscreen products, Amy Callaghan MP argued that there was “appetite across the House for reform of the VAT charged on sunscreen products, but even more fundamentally, there is a lack of awareness in our communities that sunscreen products are not VAT-exempt compared with other healthcare products.” The Member has launched a campaign for this change in the law.
Documents to download
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Debate on VAT on sunscreen products (181 KB , PDF)
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Income tax allowances for married couples
This briefing discusses the two income tax allowances that married couples and civil partners may be entitled to claim.
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VAT and Churches
Construction work to repair buildings, including historic churches, is charged VAT at the 20% standard rate. The Listed Places of Worship Grant Scheme provides grants to mitigate the VAT costs for these repairs.
