Written Question·Treasury·UIN 43325

Deposit Return Schemes: VAT

Tabled: 1 April 2025
Answered: 9 April 2025

Question

Euan Stainbank

LabourFalkirk

To ask the Chancellor of the Exchequer, if she will make an estimate of the potential impact of applying VAT to unredeemed deposits in the deposit return scheme on revenues to the Exchequer.

Answer

James Murray
The Government is currently considering the VAT treatment of deposits charged under deposit return schemes. Should VAT be applied to unreturned deposits HMRC expect the impact on exchequer receipts to be negligible.