Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will make an assessment for the implication for his policies of the changing charities' status on the list of goods and services set out in the EU Annex III of the Principal VAT Directive; and if he will make an assessment of the potential merits of reducing VAT rates for charities on their energy bills.

Subject to a transition period until April 2024 for existing qualifying charities, from 15 March 2023 the availability of UK tax reliefs for charities is restricted to UK charities only. The application of VAT reliefs for charities will not be affected.

As the UK is no longer part of the EU, it now enjoys greater freedom when setting rates of VAT than was allowed under the VAT Directive. Charities already benefit from the reduced rate of VAT where their fuel and power are used for non-business purposes.