Financial Year
|
Total VAT take (Lbn)
|
%age of pub sec current receipts
|
%age of total GDP
|
Notes on main changes
|
1972/73 | 0 | 0 | 0 | No VAT. Before 1/4/73 the UK's consumption tax was the Purchase Tax, levied at different rates depending on the goods' luxuriousness |
1973/74 | 1.5 | 4.9 | 2.0 | 1/4/73: VAT introduced into UK at standard 10% rate by Chancellor Anthony Barber as condition of joining EEC |
1974/75 | 2.5 | 6.6 | 2.8 | 29/07/74: VAT standard rate cut from 10% to 8% by Chancellor Denis Healey. 18/11/74: higher rate of 25% introduced for petrol (but not DERV) |
1975/76 | 3.5 | 7.2 | 3.1 | 1/5/75: higher rate extended to wider range of perceived luxury goods and services including TVs, cameras, caravans, aircraft, furs and jewellery |
1976/77 | 3.8 | 6.7 | 2.9 | 12/4/76: higher rate cut from 25% to 12.5% |
1977/78 | 4.3 | 6.8 | 2.8 | |
1978/79 | 4.9 | 7.0 | 2.8 | |
1979/80 | 8.0 | 9.4 | 3.8 | 18/6/79: higher rate abolished and standard VAT rate of 15% established by Chancellor Geoffrey Howe |
1980/81 | 11.1 | 11.0 | 4.6 | |
1981/82 | 11.9 | 9.9 | 4.5 | |
1982/83 | 13.8 | 10.6 | 4.8 | |
1983/84 | 15.3 | 11.1 | 4.9 | |
1984/85 | 18.6 | 12.6 | 5.5 | |
1985/86 | 19.4 | 12.3 | 5.2 | |
1986/87 | 21.3 | 13.0 | 5.4 | |
1987/88 | 24.2 | 13.5 | 5.5 | |
1988/89 | 27.2 | 13.8 | 5.5 | |
1989/90 | 29.5 | 14.0 | 5.5 | |
1990/91 | 30.9 | 13.9 | 5.3 | |
1991/92 | 35.2 | 15.2 | 5.8 | 1/4/91: VAT standard rate raised from 15% to 17.5% by Chancellor Norman Lamont (to pay for reduction in the poll tax/community charge) |
1992/93 | 37.2 | 16.3 | 5.9 | |
1993/94 | 39.2 | 16.7 | 5.8 | |
1994/95 | 41.7 | 16.3 | 5.9 | 1/4/94: Domestic fuel and power brought into VAT at reduced rate of 8% |
1995/96 | 43.1 | 15.6 | 5.7 | |
1996/97 | 46.6 | 16.2 | 5.8 | |
1997/98 | 50.6 | 16.0 | 6.0 | 1/9/97: Reduced rate for domestic fuel and power cut to 5% by new Chancellor Gordon Brown |
1998/99 | 52.3 | 15.6 | 5.9 | 1/7/98: Reduced rate (5%) applied to installation of energy saving materials when funded by certain grants and schemes |
1999/00 | 56.4 | 15.7 | 6.0 | |
2000/01 | 58.5 | 15.3 | 5.9 | 1/4/00: 5% rate applied to installation of energy saving materials in all homes. 1/1/01: 5% rate applied to women's sanitary products |
2001/02 | 61.0 | 15.7 | 5.9 | 12/5/01: 5% rate extended to children's car seats and some conversion / renovation of empty dwellings |
2002/03 | 63.5 | 16.1 | 5.8 | 1/6/02: 5% rate applied to the grant-funded installation of heating equipment |
2003/04 | 69.1 | 16.4 | 6.0 | |
2004/05 | 73.0 | 16.2 | 6.0 | 1/6/04: 5% rate for energy saving materials extended to include ground source heat pumps |
2005/06 | 72.9 | 15.0 | 5.7 | 1/4/05: 5% rate extended to sale of videos and other information connected with the welfare of elderly or disabled people or children |
2006/07 | 77.4 | 15.0 | 5.7 | 7/4/06: 5% rate applied to installation of air source heat pumps, micro-CHP & wood-fuelled boilers. 1/7/06: 5% rate applied to contraceptives |
2007/08 | 80.6 | 14.7 | 5.6 | 1/5/07: VAT applied to non-medical supplies by health prof'ls. 1/7/07: 5% rate applied to home alterations for elderly & sales of smoking cessation products |
2008/09 | 78.4 | 14.7 | 5.5 | 1/12/08: Alistair Darling reduced standard rate to 15% for a 13-month period. Exempt, zero and reduced rate items not affected |
2009/10 | 70.2 | 13.7 | 5.0 | 1/4/09: Bingo/casino fees exempted from VAT. 1/7/09: 5% rate applied to children's car seat bases. 1/1/10: Standard rate of VAT returned to 17.5% |
2010/11 | 83.5 | 15.2 | 5.6 | 4/1/11: The standard rate of VAT increased to 20 per cent by coalition Chancellor George Osborne |
2011/12 | 98.3 | 17.2 | 6.4 | 1/11/11: Low value consignment relief (LVCR) threshold, below which goods imported from outside the EU are VAT free, reduced from L18 to L15 |
2012/13 | 100.0 | 17.0 | 6.5 | 1/4/12: LVCR for goods from Channel Is. disapplied. 1/10/12: Rules tightened on treatment of hot takeaway food, holiday caravans, self-storage, etc. |
Sources: HMRC VAT Bulletin, February 2013; HM Treasury website (Public sector current receipts and GDP figures) (NB. Receipts on a cash basis not accruals; 2012-13 figs are forecasts)