Chancellor’s Options: VAT Adjustments to Address Fiscal Gap Amid Economic Challenges

• The Chancellor can consider changing UK VAT exemptions post-Brexit.
• VAT could be imposed on private healthcare providers, potentially raising £1.5bn annually.
• A higher VAT rate on luxury items could be reintroduced, similar to the 1974-1976 period.
• Removing VAT reliefs on food and children’s clothes could generate over £6bn per year.
• Raising the headline VAT rate to 21% might increase revenue by over £8bn annually.
• These measures could address fiscal gaps but may have negative political and economic impacts.

Source: mha.co.uk

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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