Electricity: VAT
The question
To ask the Chancellor of the Exchequer, whether the proposed reduction in VAT for domestic electricity bills will apply to the park homes residents.
Answered by Ministry of Housing, Communities and Local Government
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.
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