Received from a reader…
I am not sure if this is correct but are tickets for sports events, such as football matches, subject to VAT at the normal rate? If so, is there a way of checking if the prices of tickets for sports events are reduced from Monday following the announcement by the Chancellor. For example if West Ham are selling tickets for a forthcoming home game at £35, will the be reduced by 87p?
Perhaps you can look into this and invite examples to your blog. If prices aren’t reduced, it would blow a massive hole in the Chancellor’s announcement.
Without going into the politics of this, the cut in VAT will have absolutely no effect on ticket prices at football matches, except to give the club a small extra profit margin. If a ticket is sold for a game this Saturday for £45, the VAT on that is £6.70. For a game next Monday the same ticket of £45 would have a VAT component of £5.87. So the club makes an extra 83p profit for every ticket sold after 1 December. They may well, as a gesture, reduce ticket prices for the odd game so as not to be seen as profiteering. But in essence, they are only obliged to give the government 15% of whatever the same price is of what they are selling. They are not obligated to reduce prices by 2.5% from 1 December.