Medical aesthetic products. Bring back tax-free shopping; British Beauty Council lobbies UK Chancellor

THE WHAT? The British Beauty Council has backed calls for the UK government to reinstate VAT-free shopping for international tourists amid claims that the re-introduction of the scheme could bring the treasury revenues of £350 million each year.

THE DETAILS VAT-free shopping was scrapped as the UK left the European Union before being reinstated by Kwasi Kwarteng in 2022 only to be scrapped once more by current Chancellor Jeremy Hunt.

THE WHY? Victoria Brownlie, Chief Policy Officer at the British Beauty Council, explains, “To say that every additional pound counts for many businesses at present is not an understatement. The Council has therefore called on the Treasury to reinstate this measure for tourists coming to the UK. This will not only help retail directly but also wider industries such as spas and salons, bars and restaurants, theatres and tourist attractions. Evidence suggests that the full impact of the policy on Treasury revenues would be a net positive of £350m each year, so for us, it’s an easy-win measure for the Government to introduce which would really ease the current burden on businesses and show the rest of the world that the UK is open to visitors.”

Medical aesthetic products refer to a category of products used in the field of medical aesthetics, which combines medical practices with cosmetic procedures to improve the appearance of individuals. These products are typically used under the supervision of trained medical professionals such as dermatologists, plastic surgeons, or specialized nurses. They are distinct from over-the-counter cosmetics in that they often contain higher concentrations of active ingredients or require medical expertise for their application.

Examples of medical aesthetic products include:

• Dermal Fillers: Injectable substances used to restore volume, fill wrinkles, and enhance facial contours. These may include hyaluronic acid fillers like Juvederm or collagen-stimulating fillers like Sculptra.

• Botulinum Toxin (Botox): Injectable neurotoxins used to temporarily paralyze facial muscles, reducing the appearance of wrinkles and fine lines caused by facial expressions.

• Chemical Peels: Solutions containing chemical exfoliants like glycolic acid, salicylic acid, or trichloroacetic acid, used to improve skin texture, treat acne scars, and reduce hyperpigmentation.

• Laser and Light Devices: Equipment used for various skin treatments, including hair removal, skin resurfacing, tattoo removal, and treatment of vascular and pigmented lesions.

• Prescription Skincare Products: Formulations containing active ingredients such as retinoids (e.g., tretinoin), hydroquinone, or prescription-strength antioxidants, designed to address specific dermatological concerns under medical supervision.

• Microneedling Devices: Devices that create tiny punctures in the skin to stimulate collagen production and improve skin texture and elasticity.

• Cosmeceuticals: High-quality skincare products that bridge the gap between cosmetics and pharmaceuticals, often containing biologically active ingredients with proven efficacy.