Finance Bill Tracking Service 2009 | Budget 2009

BN68 VAT: REDUCED RATE FOR CHILDREN'S CAR SEAT BASES

Who is likely to be affected?

1. Suppliers and consumers of children's car seat bases.

General description of the measure

2. The 5 per cent reduced rate of VAT for children's car seats will be extended to include bases for such seats.

Operative date

3. The reduced rate will have effect on and after 1 July 2009.

Current law and proposed revisions

4. The reduced rate of VAT applies to supplies of children's car seats. The relief includes the combination of a safety seat and a related wheeled framework, booster seats and booster cushions.

5. The reduced rate of VAT for children's car seats was introduced on 12 May 2001 under what is now item 1 of Group 5 of Schedule 7A to the VAT Act 1994. A Treasury Order will extend the relief to cover children's car seat bases.

Further advice

6. If you have any questions about this change, please contact the National Advice Service on 0845 010 9000. Information about Budget measures is available on the HM Revenue & Customs website at www.hmrc.gov.uk