In a landmark ruling, the Upper Tribunal has officially classified baldness as a disability in the context of a tax dispute between a specialist wig maker and HM Revenue and Customs (HMRC). The decision came during a £277,083.10 battle involving Mark Glenn Ltd, a company co-founded by hair extension specialist Mark Sharp and former children's TV presenter Glenn Kinsey in 2001.
The company, which provides specialist wigs for women with hair loss, challenged a VAT bill from HMRC for sales of its Kinsey System wigs covering the tax years 2018 to 2024. The firm argued that the wigs, costing customers approximately £2,400 annually for fitting and maintenance, should be zero-rated under an exemption for aids for the disabled.
Judges Swami Raghavan and Kevin Poole sided with the company, ruling that severe hair loss in women constitutes an impairment that adversely affects the ability to carry out everyday activities. They stated that the distress arising from cultural significance of hair to female identity and societal expectations means that women with baldness or patchy hair loss are disabled.
HMRC had argued that baldness is a cosmetic problem and that other issues like freckles could then be viewed similarly. However, the judges disagreed, noting that the term 'disability' is not statutorily defined and should be interpreted as an ordinary language term. The ruling reverses a previous First Tier Tribunal decision that had gone against the company.
