The Government set out the impacts, including administrative impacts, of specific policies in the Tax Impact and Info notes which are published alongside tax policy changes at each Budget.

To support households with the cost of living, the Government is removing VAT from electricity bills this winter. Around 29 million households across the UK are expected to benefit from this change.

The new zero VAT rate for domestic electricity will replace the existing reduced VAT rate (5%). Anyone currently benefiting from the reduced rate will benefit from the new zero rate.

Some park home residents purchase their electricity from the park home site owner rather than directly from a licensed energy supplier. Where electricity is not individually metered and charged based on actual consumption, the electricity supply may be treated as part of the pitch fee and can therefore be subject to the same VAT treatment as that charge.

However, park home residents are protected from excessive charges by Ofgem's Maximum Resale Price provisions. These provisions prevent site owners from reselling energy at a higher price than they paid to the licensed supplier. Consumers are also entitled to request a breakdown of the site owner's costs, including electricity and/or gas charges, standing charges and VAT paid.

Consumers who consider they have been overcharged can claim against the reseller through the courts or tribunal services if their dispute cannot be resolved through negotiation. Such consumers can seek advice through this process from consumer protection bodies such as Citizens Advice.

To support households with the cost of living, the Government is removing VAT from electricity bills this winter. Around 29 million households across the UK are expected to benefit from this change.

The new zero VAT rate for domestic electricity will replace the existing reduced VAT rate (5%). Anyone currently benefiting from the reduced rate will benefit from the new zero rate.

Some park home residents purchase their electricity from the park home site owner rather than directly from a licensed energy supplier. Where electricity is not individually metered and charged based on actual consumption, the electricity supply may be treated as part of the pitch fee and can therefore be subject to the same VAT treatment as that charge.

However, park home residents are protected from excessive charges by Ofgem's Maximum Resale Price provisions. These provisions prevent site owners from reselling energy at a higher price than they paid to the licensed supplier. Consumers are also entitled to request a breakdown of the site owner's costs, including electricity and/or gas charges, standing charges and VAT paid.

Consumers who consider they have been overcharged can claim against the reseller through the courts or tribunal services if their dispute cannot be resolved through negotiation. Such consumers can seek advice through this process from consumer protection bodies such as Citizens Advice.

To support households with the cost of living, the Government is removing VAT from electricity bills this winter. Around 29 million households across the UK are expected to benefit from this change.

The new zero VAT rate for domestic electricity will replace the existing reduced VAT rate (5%). Anyone currently benefiting from the reduced rate will benefit from the new zero rate.

Some park home residents purchase their electricity from the park home site owner rather than directly from a licensed energy supplier. Where electricity is not individually metered and charged based on actual consumption, the electricity supply may be treated as part of the pitch fee and can therefore be subject to the same VAT treatment as that charge.

However, park home residents are protected from excessive charges by Ofgem's Maximum Resale Price provisions. These provisions prevent site owners from reselling energy at a higher price than they paid to the licensed supplier. Consumers are also entitled to request a breakdown of the site owner's costs, including electricity and/or gas charges, standing charges and VAT paid.

Consumers who consider they have been overcharged can claim against the reseller through the courts or tribunal services if their dispute cannot be resolved through negotiation. Such consumers can seek advice through this process from consumer protection bodies such as Citizens Advice.

To support households with the cost of living, the Government is removing VAT from electricity bills this winter. Around 29 million households across the UK are expected to benefit from this change.

The new zero VAT rate for domestic electricity will replace the existing reduced VAT rate (5%). Anyone currently benefiting from the reduced rate will benefit from the new zero rate.

Some park home residents purchase their electricity from the park home site owner rather than directly from a licensed energy supplier. Where electricity is not individually metered and charged based on actual consumption, the electricity supply may be treated as part of the pitch fee and can therefore be subject to the same VAT treatment as that charge.

However, park home residents are protected from excessive charges by Ofgem's Maximum Resale Price provisions. These provisions prevent site owners from reselling energy at a higher price than they paid to the licensed supplier. Consumers are also entitled to request a breakdown of the site owner's costs, including electricity and/or gas charges, standing charges and VAT paid.

Consumers who consider they have been overcharged can claim against the reseller through the courts or tribunal services if their dispute cannot be resolved through negotiation. Such consumers can seek advice through this process from consumer protection bodies such as Citizens Advice.

At £90,000, the UK has a higher VAT registration threshold than any EU country and the joint highest in the OECD. This means the majority of UK businesses are not in the VAT system at all.

The Government is aware some European countries apply different VAT rates to certain goods and services, reflecting different tax systems, policy choices and wider fiscal contexts.

To support the Government’s housing delivery targets, the Government maintains several VAT reliefs for the construction of homes. This includes a reduced rate of VAT of five per cent for the renovation of properties that have been empty for two or more years.

Reduced VAT on services in relation to conversions, renovations and alterations is included in the ongoing evaluation of tax reliefs to support housebuilding. The evaluation report will be published in due course.

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 are limited and must be balanced against their impact on the public finances.

HMRC estimates that the cost of changing the 20 per cent Standard Rate of VAT on all accommodation and food and beverage services to the Reduced Rate of 5 per cent would be around £17 billion in 2026-27, rising to £19.5 billion in 2030-31.

The Government is aware some European countries apply different VAT rates to certain goods and services, reflecting different tax systems, policy choices and wider fiscal contexts.

VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services in the UK. Reduced rates of VAT come at a significant cost to the Exchequer, reduce the revenue available for vital public services, and must represent value for money for the taxpayer.

To support households with the cost of living, the Government is removing VAT from electricity bills this winter. Around 29 million households across the UK are expected to benefit from this change.

The new zero VAT rate for domestic electricity will replace the existing reduced VAT rate (5%). Anyone currently benefiting from the reduced rate will benefit from the new zero rate.

Some park home residents purchase their electricity from the park home site owner rather than directly from a licensed energy supplier. Where electricity is not individually metered and charged based on actual consumption, the electricity supply may be treated as part of the pitch fee and can therefore be subject to the same VAT treatment as that charge.

The Department for Education is working with third sector organisations, including Swim England, the Royal Life Saving Society UK, and National Water Safety Education, to support schools in delivering swimming lessons as part of the national curriculum.

Certain sporting and physical education services supplied by ‘eligible bodies’ are already exempt from VAT, including some swimming lessons. Further information can be found here: https://www.gov.uk/guidance/sport-supplies-that-are-vat-exempt-notice-70145#an-overview-of-the-exemption-for-sporting-and-physical-education-services

The Government recognises the significant contribution made by hospitality businesses to economic growth and social life in the UK.

VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. VAT is the UK’s third largest tax, forecast to raise £180 billion in 2025/26.

HMRC estimates that the cost of changing the 20 per cent Standard Rate of VAT on all accommodation and food and beverage services to the Reduced Rate of 5 per cent would be around £17 billion in 2026-27, rising to £19.5 billion in 2030-31.

Tax breaks reduce the revenue available for vital public services and must represent value for money for the taxpayer. Exceptions to the standard rate have always been limited and balanced against affordability considerations.

Visitor levies are common in Europe and the rest of the world. All other G7 countries already have some form of tourism or overnight accommodation levy in place. It will be for strategic authorities to decide whether a levy is the right choice for their region and how funds should be reinvested within their areas to drive growth.

The Government is keen to support the supply of new homes, including the reuse of existing buildings and already encourages this through the VAT system. The conversion of non-residential buildings, including churches, into a residential dwelling qualifies for a reduced rate of VAT at five per cent. Additionally, the conversion of non-residential buildings for relevant housing associations attracts a zero rate of VAT.

Away from VAT, to support the repair and maintenance of places of worship, the Department for Digital, Culture, Media and Sport administer the Places of Worship Renewal Fund which will allocate £92m over four years. The Fund provides upfront capital grants to enable essential capital works for buildings in greatest need.

HMRC became aware of the review undertaken by the Irish authorities on 11th August 2026. It was brought to our attention by a query relating to it, to which we provided the response referenced CEDEL/4628028/2026.

HMRC has not made any assessment on the impact of this judgment on the island of Ireland.