The standard rate of Value Added Tax will return to its former rate of 17.5 per cent from 1 January 2010.

VAT was temporarily reduced to 15 per cent on 1 December 2008 in an effort to encourage consumers to spend.  The Chancellor stated at the time that he had decided that VAT would return to 17.5% after a 'tax holiday' of 13 months.

Please note that bills raised from January onwards will include vat at 17.5%.