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HMRC internal manual

VAT Clothing

HM Revenue & Customs
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Services - the hire of clothing and the private use of clothing: The hire and private use of young children’s clothing and footwear - Note (5) to Item 1

This Note refers to parts of the VAT Act which deal with the hire of goods and the application of goods to private use. Under Schedule 4 of the Act, these are regarded as supplies of services. The Note recognises this, but states that if the services of hire or private use relate to goods which are eligible for zero-rating as young children’s clothing or footwear, they may themselves be zero-rated. In practice this is likely to relate in the main to the hire or loan of clothing or footwear. This is mentioned in Notice714 and we have also ruled that the hire of children’s fancy dress costumes and babies’ nappies may be zero-rated.

The separate supply of ice-skates, roller skates, ten-pin bowling shoes etc, is also eligible for the relief in accordance with the size criteria for footwear.