BRC calls for break for VAT kids

A rapid rise in obesity levels is leading to calls for a change in the rules on VAT on children's clothes.

The tax is not levied on the clothing of children up to the age of 14. But the rules are defined with reference to the maximum size measurements. As children get bigger quicker, they are growing out of the rules before they reach the age of 14.

Advisers say recent tribunal cases highlight a bulging problem with childrens' clothes.

A tax update from KPMG earlier this month said: 'The appellant was unsuccessful in arguing for zero rating for uniform which though sold to 11 year olds starting secondary school, had not been adapted to fit the shape of younger children and was big enough to be worn by 14 year olds.'

The British Retail Consortium weighed in today. Jane Milne, director of business environment at the BRC, told The Times: 'For so far back in time there has been zero VAT on children's clothing as part of government policy to support families. But the point with obesity, and better nutrition levels in general, children are getting bigger. The upper limits have to change so that many childrens' clothing falls within the zero VAT band.'

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