Written question asked by David Smith (Labour) on Friday, 4 September 2026, in the House of Commons. It was due for an answer on Tuesday, 8 September 2026. It was answered by James Murray (Labour) on Monday, 14 September 2026 on behalf of the Treasury.

Electricity: VAT

Question: To ask the Chancellor of the Exchequer, for what reason his Department is applying VAT on new connections to off-electrical grid homes; and what consideration he has given to lifting this on off-grid homes.

Answer

The VAT treatment of electricity connection charges depends on the nature of the supply and the circumstances in which it is made. Where a grid connection forms part of a qualifying domestic supply of electricity, it is subject to the same VAT treatment as that supply.

VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Exceptions to the standard rate have always been limited and balanced against affordability considerations.

Secondary information

Type: Written question
Reference: 27339
Session: 2026-27
Subjects: Electricity VAT
Link: View this Written question on www.parliament.uk

Electricity: VAT

Secondary information

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