Under new UK legislation, businesses will no longer pay VAT on goods donated to charity, effective 1 April 2026. The change removes the current requirement for VAT on free gifts to charities, while donated resale goods remain zero‑rated. The relief aims to reduce waste and administrative costs for businesses and charities alike.
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Energy Digital · about 7 hours ago
UK: New Prime Minister Andy Burnham will cut VAT on electricity bills from the start of October, exempting households in England, Scotland and Wales for six months. The measure will reduce average household bills by about £45 and cost the Treasury roughly £850m this financial year.
TaxResearch · 1 day ago
The UK will remove VAT from electricity bills from October, cutting average annual bills by about £45 per household. The move is expected to reduce tax revenue by roughly £1.1 billion, but critics argue it does not address underlying grid capacity issues.
Guardian · 1 day ago
The UK government will remove VAT from electricity bills for households in Great Britain from 1 October 2026, reducing the annual price cap by £45. Northern Ireland will retain the 5% VAT rate, and the cut does not apply to gas.
VatCalc · 1 day ago
The United Kingdom has announced that domestic electricity bills will be zero-rated from 1 October 2026, reducing the VAT rate from 5% to 0%. The measure is temporary, applying until 31 March 2027, and will be funded by cancelling the planned Digital ID programme.
The Independent · 2 days ago
The UK government will remove VAT from domestic electricity bills from 1 October 2026, cutting the rate from 5% to 0%. The change is expected to save households around £45 a year and will be funded by cancelling the Digital ID programme.
The Independent · 2 days ago
In the UK, the government announced an £850 million tax cut on energy bills, making electricity bills VAT free from 1 October 2026 in England, Scotland and Wales. Northern Ireland remains exempt because EU VAT rates apply under the Windsor Framework, preventing the cut from applying there.
The relief takes effect on 1 April 2026.
Businesses will no longer pay VAT on goods donated to charity, removing the current requirement for VAT on free gifts to charities.
Yes, donated resale goods remain zero‑rated under the existing rules.
Primary source
Read the full article at British Beauty CouncilThis summary was published on VATfaqs.com on 9 January 2026. It relates to VAT developments in United Kingdom. The original source is British Beauty Council.
