A policy paper introduces a temporary zero rate of VAT for qualifying supplies of domestic electricity in Great Britain, effective from 1 October 2026 to 31 March 2027.
Key takeaway
Temporary zero VAT on domestic electricity in Great Britain from 1 October 2026 to 31 March 2027.
- Step 1 · The triggerthe UK government sets a zero VAT rate for domestic electricity supplies from 1 October 2026
- Step 2 · Knock-onelectricity suppliers pass through the VAT relief, reducing household and SME bills for eligible meters
- Step 3 · Reaches youSMEs with domestic-type meters experience lower input costs, improving cash flow and margin during the relief period
The trigger is reported by the source below. The steps that follow are Branch²’s traced reasoning — how the shock could reach a business like yours, not a prediction.
Source: HM Revenue & Customs
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