Fuel Oil and Liquefied Petroleum Gas: VAT

(asked on 12th October 2026) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will consider a time-limited VAT holiday on Heating Oil and LPG payments between 1 October 2026 and 31 March 2027.


Answered by
James Murray Portrait
James Murray
Financial Secretary to the Treasury and Paymaster General
This question was answered on 15th October 2026

Heating oil and Liquified Petroleum Gas (LPG) benefit from a reduced VAT rate of five per cent, rather than the standard 20 per cent. In addition, to help these households manage higher energy costs, the Government is providing over £50 million of additional support for low-income households which rely on heating oil.

The Chancellor makes decisions on tax policy at fiscal events, and does not routinely comment on proposals.

Reticulating Splines