VAT on electricity to be cut
The new Prime Minister has announced a cut to the rate of VAT on electricity from 1 October. What's the full story?
Andy Burnham's first tax policy has been announced. From 1 October to 31 March 2027, VAT will be cut from household electricity bills. The policy is supposed to help with the cost of living, but in reality, will save an average household just £45.
The rate of VAT will be cut from 5% to zero for six months, and any further changes will be announced in the next Budget. The VAT rate should be passed on to customers in England, Wales and Scotland, with similar support being rolled out in Northern Ireland. The cut applies even if you're on a fixed tariff, but note it only applies to electricity bills, not gas.
Related Topics
-
Payment deadline for corporation tax
-
HMRC targets undeclared consultancy income in the medical sector
HMRC is writing to people working in the medical sector where information supplied by private healthcare providers suggests that consultancy fees may have been omitted from their tax returns. Recipients have 30 days to check their position and respond. What should you do if you get a letter?
-
MONTHLY FOCUS: BUSINESS AND AGRICULTURAL PROPERTY RELIEF: WHAT DO THE NEW IHT RULES MEAN FOR YOU?
The inheritance tax treatment of businesses and farms changed fundamentally from 6 April 2026. The amount that can qualify for 100% business property relief and agricultural property relief is now capped, potentially leaving families with a significant tax bill for the first time. What has changed, and what should business owners and farmers be doing about it?