29 January 2020 Amanda Darley, Head of Operations and Engagement
In 2018 the government commissioned the Cairncross Review to 'examine the sustainability of high-quality journalism in the UK' and the review was published in February 2019. Recommendation 7 in the review included extending the zero rate of VAT to electronic newspapers. On 27 January 2020 the government responded to the Cairncross Review, and in relation to recommendation 7, the extension of the zero rate to electronic newspapers, the responses states:
'39. The government accepts the public good of traditional print newspapers and is committed to maintaining zero-rated VAT in this area.
40. We also recognise that changes in technology are shifting traditional journalism online and we are therefore considering the merits and risks associated with extending the zero rate.'
This is welcome news following the decision in the News Corps Upper Tribunal case, and perhaps makes it (a little) less likely that HMRC will appeal....? We'll see!