Originally a tax on luxury items. Currently 17.5% for most things, although there is a 5% rate for some stuff, and 0% for the (very few) things that the Government? still decrees aren't luxuries.
Shelter, milk and bread. Anything else is a luxury. --Vitenka (Not that I dislike luxury...)
...children's clothing, cake...
Books.
There is a difference between items on which VAT is charged at 0% (zero-rated) and items to which VAT does not apply at all. [Insert more details here].