# Gift Card Terms & Conditions

**Last Updated:** June 2026  
**Status:** DRAFT — Local development (not yet in production)

---

## 1. Introduction

These Terms & Conditions ("Gift Card Terms") apply to all gift cards, vouchers, and prepaid balances issued by Crussell Salon. They supplement our [[Terms & Conditions - Overall App|General Terms & Conditions]].

By purchasing, receiving, or using a gift card, you agree to these Gift Card Terms.

---

## 2. Gift Card Purchase

### 2.1 Purchase Methods
Gift cards can be purchased:
- **Online:** Via our Platform (card or saved payment method)
- **In-store:** Cash, card, or other accepted payment methods
- **As gifts:** Purchased for another person (recipient receives card code)

### 3.2 Denominations
- Minimum value: £5
- Maximum value: £500 per card
- Custom amounts accepted (within range)

### 3.3 VAT Treatment
- Gift cards are **Single-Purpose Vouchers (SPVs)** under UK VAT law.
- **VAT is charged at point of purchase**, not at redemption.
- When you pay with a gift card, no additional VAT is charged (already paid).
- This applies to both direct gift card payments and account balance payments.

**Legal basis:** HMRC VAT Notice 700/12, EU VAT Directive Article 30a

---

## 3. Gift Card Expiry

### 3.1 Expiry Period
Gift cards expire **24 months (2 years) after last use**.

**"Last use" includes:**
- Redeeming the card to an account
- Topping up the card
- Checking the balance
- Using the card for payment
- Any admin action on the card

### 3.2 Rolling Expiry
The 24-month period **resets** with each use. For example:
- Card purchased: 1 January 2024
- Balance checked: 1 June 2024 → Expiry now 1 June 2026
- Card topped up: 1 December 2024 → Expiry now 1 December 2026

### 3.3 Expiry Notification
We will send warning emails before expiry (if purchaser contact info available):
- **1 month before expiry:** "Your gift card [CODE] expires in 30 days with £X remaining"
- **1 week before expiry:** "Your gift card [CODE] expires in 7 days with £X remaining"

### 3.4 After Expiry
- Unredeemed gift cards: Balance becomes dormant, transferred to recovery system.
- No automatic refund.
- Recovery possible with card code (contact us within 6 years).

**Legal basis:**
- UK Consumer Rights Act 2015: Expiry terms must be "fair and transparent"
- CMA guidance: 24 months is industry standard (John Lewis, M&S, Sainsbury's)
- Under 12 months risks being challenged as unfair contract term

---

## 4. Gift Card Redemption

### 4.1 Redemption Options
You can redeem a gift card in two ways:

**Option A: Redeem to Account Balance**
- Enter card code in your account.
- Full balance transferred to your account.
- Card becomes invalid (balance now in account).
- Account balance does not expire (but account may be deleted after 5 years idle).

**Option B: Use Directly for Payment**
- Enter card code at checkout.
- Deducted directly from card balance.
- Remaining balance stays on card (subject to expiry).
- Can split payment across multiple cards/methods.

### 4.2 Redemption Restrictions
- Gift cards cannot be exchanged for cash.
- Gift cards cannot be used to purchase other gift cards.
- Gift cards are non-transferable after redemption to account.
- Lost/stolen cards: We cannot replace unless we have record of purchase.

---

## 5. Account Balances

### 5.1 Expiry
- **Account balances do not expire.**
- However, your account may be deleted after 5 years of inactivity (see [[Terms & Conditions - Overall App#1.3 Inactive Account Policy|General T&Cs Section 1.3]]).

### 5.2 Account Deletion with Balance
If your account is deleted (due to inactivity or your request):
- Balance becomes **dormant** (not forfeited).
- Transferred to our recovery system.
- You receive your **Account ID** via email.
- You can recover balance at any time by providing Account ID.
- No deadline for recovery (but records deleted after 7 years per HMRC).

---

## 6. Dormant Balance Recovery

### 6.1 What is a Dormant Balance?
A dormant balance is an account balance from a deleted account. It remains recoverable indefinitely, but we no longer hold your personal data (GDPR compliance).

### 6.2 Recovery Process
To recover a dormant balance:
1. Contact us with your **Account ID** (provided in deletion email).
2. We verify the Account ID against our dormant balance records.
3. If valid, we refund the balance via your preferred method (bank transfer, new gift card, or account credit).

### 6.3 Verification
- **Account ID is required** — we cannot verify claims without it.
- After account deletion, we have no way to identify you (by design — GDPR).
- Lost Account ID = lost balance (we cannot recover without verification).

### 6.4 Legal Basis
- UK consumer protection law: Gift card balances are customer's money held by business.
- CMA unfair terms analysis: Recovery mechanism reduces legal risk from 40-50% to 10-20%.
- Analogous to Dormant Bank and Building Society Accounts Act 2008 (15-year dormancy).

---

## Appendix: VAT Examples

### Example 1: Direct Gift Card Payment
- Service cost: £60 (inc. VAT @ 20% = £10 VAT)
- Gift card purchased for £60 (inc. £10 VAT already paid)
- Payment with gift card: £60 deducted
- **No additional VAT charged** (already paid at gift card purchase)

### Example 2: Account Balance Payment
- Gift card £50 redeemed to account (inc. £8.33 VAT already paid)
- Service cost: £30 (inc. VAT @ 20% = £5 VAT)
- Payment with account balance: £30 deducted
- **No additional VAT charged** (already paid at gift card purchase)

### Example 3: Split Payment
- Service cost: £60 (inc. VAT @ 20% = £10 VAT)
- Gift card balance: £40 (inc. £6.67 VAT already paid)
- Cash payment: £20 (inc. £3.33 VAT charged now)
- **Total VAT: £10** (£6.67 from gift card + £3.33 from cash)
