This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

VAT Clothing

Suitability Test: Retailers: General

Firstly, please refer to Notice714. A retailer can affect the liability of a garment by virtue of how it is displayed, promoted or segregated. However, the criteria on segregation, outlined in the Notice, to satisfy the ‘held out for sale’ rule should be applied bearing in mind the conditions in which the supplier is operating. A large department store is perfectly capable of meeting both requirements, but a market trader with limited space, who is at the mercy of the weather, might find it difficult to segregate properly. Therefore, when considering ‘holding out for sale’, the principle which you should follow is that the trader should make the best attempt, within the confines of his or her working environment, to segregate young children’s clothing and footwear.