VAT rate increase on 1 January 2014: standard rate raised to 20% and intermediate rate to 10%

The third amending finance act for 2012 raised the standard VAT rate from 19.6% to 20% and the intermediate rate from 7% to 10% for transactions whose chargeable event occurs on or after 1 January 2014. It also planned to lower the reduced rate from 5.5% to 5%; that cut was repealed by article 6 of the 2014 Finance Act, which kept the reduced rate at 5.5%. Transitional rules kept the 7% rate for certain housing operations started before that date.