Rethink on VAT Treatment of Hot Takeaway Food and Static Caravans

May 31, 2012 /

Charities have urged anew the government to exempt charity donations from the planned cap on tax reliefs amid the rethink on VAT on hot takeaway food and static caravans.

Chancellor George Osborne proposed in the budget that any food served above ambient temperature would be taxed at 20 percent to address an “anomaly” in the system, The Telegraph reported.

However, bakeries and others protested it was an unfair tax on millions of working-class Britons who enjoyed pasties and pies for lunch.

Meanwhile, Osborne said plans to tax static caravans at 20 percent will be amended. They will now attract Vat at a reduced rate of five percent from next April.

Chris Morgan, head of tax policy at KPMG in the UK, said: “Today’s news of a rethink on the ‘pasty-tax’ and ‘caravan-tax’ is welcome. It suggests that the government is genuinely committed to listening to views raised during the consultation process on proposed tax changes.

“We very much hope that policy-makers will be similarly open to hearing the concerns being raised about the impact of proposed changes to gift-aid on charitable giving and prepared to consider also amending these proposals as a result.”


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