Overview

This bill proposes to exempt the supply of electricity at public electric vehicle (EV) charging points from Value Added Tax (VAT) in the UK. This aims to make charging EVs cheaper and encourage their adoption.

Description

The bill amends the Value Added Tax Act 1994 by adding a new exemption for the supply of electricity to public EV charging points. This new exemption will be effective from April 6th, 2026 and will apply across England, Wales, Scotland, and Northern Ireland. The definition of "public charge point" will be determined by Regulation 2 of the Public Charge Point Regulations 2023. The amendment adds a new "Group 17" to Schedule 9 of the 1994 Act, specifically covering this exemption.

Government Spending

The bill will likely lead to a reduction in UK government revenue from VAT. The exact figure is difficult to predict without further economic modeling, but it's expected to be a significant amount depending on the usage of public charging points in the future.

Groups Affected

• Electric Vehicle Drivers: Will benefit from potentially lower electricity prices at public charging points.
• Public Charging Point Operators: May see increased demand and profitability due to lower prices for consumers.
• UK Government: Will experience a decrease in VAT revenue.

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