Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will make an assessment of the potential impact of the rate of VAT applied to electric vehicle charging in domestic settings on the take-up of electric vehicles.

The VAT relief for the supply of domestic fuel and power was not designed for charging electric vehicles (EVs) at home. However, the practical challenges of differentiating between the electricity used at home for general domestic purposes and the electricity used to charge EVs means that the relief is effectively being applied to EV charging at home.

Although VAT policy has not been designed to incentivise the uptake of EVs, the Government is committed to supporting the transition to zero emission vehicles to help the UK meet its net zero obligations. The Government has already spent over £2 billion to support the transition. With this support, the EV transition is continuing at pace. In 2022, battery electric vehicles made up 16.6 per cent of all new cars sales, up from 11.5 per cent in 2021.