The Earl of Munsterasked Her Majesty's Government:
In the light of recent statistics on child growth, what arrangements they will make to refund VAT to parents who are unable to afford to buy clothes for their children (including school clothes) in children's clothing stores; and
For the purpose of VAT, how they define (i) children's clothing, and (ii) a child; and
What was the exemption made for children's clothing when VAT was introduced in 1973.
§ Lord Mackay of ArdbrecknishArticles designed as clothing or footwear for young children and not suitable for older persons were zero-rated in 1973 and have remained so. There is no definition of a young child in VAT legislation, but the upper age limit has always been taken to the eve of the fourteenth birthday. Any further extension of zero-rating to larger sizes of clothing or footwear could provide scope for misapplication of the relief to older persons for whom it was never intended. Refunds of VAT would not be an appropriate way of giving relief. Help for poorer families is better targeted through the benefits system.