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Commentary

V4.423 Temporary reduced rate—overview

Part V4 Exemption, zero-rating and reduced rates

V4.423 Temporary reduced rate—overview

This paragraph provides an overview of the temporary reduced ratings which were introduced between 15 July 2020 and 31 March 2022 in response to the challenges faced by businesses as a consequence of the COVID-19 (coronavirus) pandemic.

Background to the temporary reduced rate

On 8 July 2020, the Government announced that it would introduce a temporary 5% reduced rate of VAT for certain supplies of hospitality, hotel and holiday

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