- Domestic supplies of electricity in Great Britain will be zero-rated for VAT from 1 October 2026 to 31 March 2027, replacing the current 5% reduced rate.
- The change does not apply in Northern Ireland.
- The zero rate applies only to “qualifying use,” meaning domestic use (including homes, certain residential settings, and supplies below a de minimis threshold) and non-business use by charities.
- HMRC guidance (RCB 10 (2026)) says billing periods spanning 1 October 2026 can be handled by determining VAT based on the date of consumption; meter readings are the recommended method, but other fair and reasonable methods are allowed.
Source: taxscape.deloitte.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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