HMRC has removed VAT on eligible goods donated by VAT‑registered businesses to registered charities, effective 8 June 2026. The relief includes a monetary cap per item and prohibits charities from reclaiming VAT on donated goods. Businesses should keep detailed records of donated items.
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TaxResearch · about 20 hours 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 · about 22 hours 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 · about 24 hours 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 · 1 day 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 · 1 day 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.
BBC · 1 day ago
UK VAT will be cut from household electricity bills from 1 October, reducing the rate from 5% to zero and saving households about £45 a year. The cut is funded by savings from scrapping the digital ID programme and will apply to England, Scotland and Wales, with equivalent funding for Northern Ireland.
Key Takeaways
From 8 June 2026, VAT is no longer due on eligible goods donated free of charge to registered charities.
No, charities cannot reclaim VAT on the donated goods.
Charities should keep a record of donated goods, especially expensive items, and maintain an audit trail.
Primary source
Read the full article at Scottish Financial NewsThis summary was published on VATfaqs.com on 8 June 2026. It relates to VAT developments in United Kingdom. The original source is Scottish Financial News.
