The UK government is putting 20% VAT on public charging into law. On 28 October 2026, Budget day, HMRC published a brief saying that legislation taking effect on 1 November 2026 treats electricity from publicly accessible charge points, and from workplace charge points used by employees and contractors, as not supplied for domestic use. Those sessions are therefore standard-rated at 20%, except supplies to a charity for non-business use.
That closes the door the Charge My Street case had opened. In February 2026 the First-tier Tribunal ruled that the community operator's public chargers qualified for the reduced domestic rate, and HMRC appealed. The government has not waited for the appeal: it has changed the law. Electricity used at home, including through a private wallbox at a dwelling, keeps its relief.
What changes, and what does not
| Where you charge | Before the Budget | From 1 November 2026 |
|---|---|---|
| Home, including a private wallbox | 0% VAT, temporary, until 31 March 2027 | 0% VAT, which EV Powered reports is extended to July 2027 |
| Public chargers, including Superchargers | 20%, contested in court | 20%, written into law |
| Workplace chargers | 20% | 20%, written into law |
For Tesla owners in Britain, the Supercharger bill does not move. Prices already include 20% VAT. A 5% rate would have cut a price that includes VAT by 12.5%, and that is now off the table. The same law also treats public and workplace charging as non-domestic for the Climate Change Levy, a business energy tax that operators account for.
The temporary zero rate on household electricity has applied since 1 October. According to EV Powered, Chancellor John Healey extended it to July in his Budget speech. That leaves home charging 20 percentage points of VAT cheaper than public charging.
£100 million and a "porting" taskforce instead
Instead of a VAT cut, the Budget sets aside £100 million over two years from spring 2027 for local, lower-powered public chargers. The government estimates that this could save an average on-street driver without home charging about £150 a year. Auto Express reports that operators get the money only if the saving clearly reaches drivers, and they will have to report their prices.
The Cost of Public Electric Vehicle Charging Review, led by Philip New and published alongside the Budget, recommends "porting": letting drivers bill a local public charging session to their home electricity tariff. With its other measures, the review says, this could cut the cost of local public charging by 15 to 20 pence per kWh. Zapmap puts today's average at a standard public AC charger at 54 pence per kWh. The government called porting complex and handed it to an independent taskforce, so it has no date.
Both measures aim at slow kerbside charging for the third of drivers without a driveway. Neither touches rapid hubs or Superchargers.
The reaction
ChargeUK, which represents more than 40 charging companies, said the government had "slammed the door shut" on VAT fairness. Its chief executive, Shane Brennan, called the review's recommendations "too little, too complex and too slow". Polestar UK said a 5% rate on public charging would cost about £140 million a year, roughly a tenth of the £1.36 billion the Budget spends extending the 5 pence per litre cut in fuel duty to July.
What to watch next: the porting taskforce's terms, how the £100 million is allocated from spring 2027, and the government's pending decision on the zero-emission vehicle mandate.