Women’s sanitary products — period underwear
Published 8 December 2023
© Crown copyright 2023
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This publication is available at https://www.gov.uk/government/publications/expanding-the-zero-rate-of-vat-to-include-period-underwear/womens-sanitary-products-period-underwear
Who is likely to be affected
Retailers and suppliers of reusable period underwear.
General description of the measure
The purpose of this measure is for reusable period underwear, more commonly referred to as ‘period pants’, to be included within the scope of the women’s sanitary products VAT zero rate relief, thereby extending the current relief.
The women’s sanitary products VAT zero rate relief came into force on 1 January 2021 and is currently restricted to conventional period products, such as sanitary pads and tampons, and some reusable products, such as reusable menstrual cups.
Policy objective
The policy rationale for extending the zero rate to reusable period underwear is in line with the government’s wider objective of increasing access to such products.
The market for period underwear has significantly changed since the introduction of the relief in 2021. The inclusion of period underwear within the zero rate should make them more affordable.
Background to the measure
Women’s sanitary products were zero-rated for VAT from 1 January 2021. Previously, the products currently under the scope of the relief were reduced rated.
During the last 2 years, the market for reusable period products and especially period underwear has evolved. Period underwear, which are often marketed as ‘period pants’, are commonly available for sale in high street shops and by many online retailers.
At Autumn Statement 2023, the government announced the extension of the women’s sanitary product relief to include period underwear, which will come into effect on 1 January 2024.
Detailed proposal
Operative date
The measure will have effect from 1 January 2024.
Current law
Under current provisions of the Value Added Tax Act 1994 (VATA), the VAT zero-rate for women’s sanitary products does not include any form of clothing and is provided for by section 30(1) and (2), and Group 19 of Schedule 8. A legislative definition of period underwear is required to bring them into scope. Section 30(4) and 96(9) of VATA 94 give HM Treasury powers to amend the scope of that group.
Proposed revisions
The Statutory Instrument will amend Group 19 of Schedule 8 to VATA, Note 1 to include ‘Reusable period underwear that is designed, and marketed, as being primarily for use for absorbing, or otherwise collecting lochia or menstrual flow’.
Summary of impacts
Exchequer impact (£ million)
| 2023 to 2024 | 2024 to 2025 | 2025 to 2026 | 2026 to 2027 | 2027 to 2028 | 2028 to 2029 |
|---|---|---|---|---|---|
| Negligible | -5 | -10 | -10 | -10 | -15 |
These figures are set out in table 5.1 of Autumn Statement 2023 and have been certified by the Office for Budget Responsibility. More details can be found in the policy costings document published alongside Autumn Statement 2023.
Economic impact
This measure is not expected to have any significant macroeconomic impacts.
Impact on individuals, households and families
This measure will have a positive impact on individuals who purchase reusable period underwear and will ensure that those products are zero rated for VAT, treating them in the same way as other period protection products.
The measure is not expected to impact on family formation, stability or breakdown.
Customer experience is expected to remain the same as this does not alter how individuals interact with HMRC.
Equalities impacts
This measure is likely to have greater benefit to groups with certain protected characteristics, such as women and girls. This could also benefit those who for religious reasons may not wish to use tampons and disabled people, and those with sensory issues, who may find it difficult to use traditional period products such as tampons and sanitary pads.
It is not anticipated that there will be impacts on other groups sharing protected characteristics.
Impact on business including civil society organisations
This measure is expected to have a negligible impact on businesses who supply and sell reusable period underwear. One-off negligible costs include familiarisation with the new rules of the zero rate. There are no expected continuing costs or savings.
This measure is expected overall to have no impact on business’ experience of dealing with HMRC as the measure does not change any processes or tax admin obligations or the way customers interact with HMRC.
There is expected to be no impact on civil society organisations.
Operational impact (£ million) (HMRC or other)
HMRC will not incur any costs implementing this change of policy.
Other impacts
Other impacts have been considered and none have been identified.
Monitoring and evaluation
The measure will be kept under review through communication with affected taxpayer groups.
Further advice
If you have any questions about this change, please contact Hina Kanwal:
- on telephone: 03000 593 437
- by email: hina.kanwal@hmrc.gov.uk
Declaration
Nigel Huddleston MP, Financial Secretary to the Treasury, has read this tax information and impact note and is satisfied that, given the available evidence, it represents a reasonable view of the likely costs, benefits and impacts of the measure.