EV chargers in blocks of flats: new VAT and levy rules from 1 November
From 1 November 2026 the law says electricity from publicly accessible and workplace EV chargers is not for domestic use, so it carries full VAT and the Climate Change Levy. HMRC says chargers that only residents can use may still count as domestic, which matters for blocks with shared car park charging.
What happened
On 28 October 2026, Budget day, HMRC published Revenue and Customs Brief 13 (2026) and a policy paper confirming new legislation on the tax treatment of electric vehicle (EV) charging. From 1 November 2026, electricity supplied through:
- a publicly accessible EV charging point, or
- a charging point that employees and contractors can use at their workplace
is not a supply for domestic use. It is charged VAT at the standard 20% rate (unless supplied to a charity for non-business use) and the Climate Change Levy applies. HMRC says this puts its longstanding policy into law after the First-tier Tribunal decision in Charge My Street Ltd. The change is in force now.
What it means for your building
More blocks are adding shared chargers in car parks, often paid for by the residents’ company and recharged to users. The new law matters because household electricity in Great Britain currently has 0% VAT (until 30 June 2027) and no Climate Change Levy, while publicly accessible and workplace charging carries both.
HMRC’s guidance draws the line on who can use the charger:
- A charge point is not publicly accessible “if it can only be used by residents of a particular dwelling or dwellings”. HMRC’s brief says a separate supply through a stand-alone charge point “provided for private residential use at a particular dwelling, residential building” may qualify for relief.
- A charge point is publicly accessible if “the general public or a section of the general public” can use it, including where it is open to customers of a particular premises.
- A charger for staff at their workplace, for example building staff, is a workplace charger and does not qualify.
- The small-quantity rule that treats up to 1,000 kWh a month as domestic does not apply to EV charging supplies.
So a residents-only charger in a block’s car park may still be billed as domestic, while one open to visitors or a neighbouring business may not. If the company resells charging to residents, the way it charges and accounts for that is a separate question for an adviser.
What to do now
- If your block has or is planning shared chargers, write down who can use them: residents only, visitors, staff, or the public.
- Check the VAT rate on the bills or the charging operator’s invoices from November onwards, and ask the supplier or operator how it has applied the new rules.
- Before changing access, for example opening chargers to visitors, ask the supplier or operator whether that changes the tax treatment.
- If the company recharges electricity to residents, take advice from an accountant or VAT adviser on how to do it.
This is general information about HMRC guidance, not tax advice.
How Freeholdpilot helps
Freeholdpilot keeps charger contracts and operator invoices in the building’s document drive, and its votes and resolutions tool lets directors record decisions such as who can use the chargers.
Questions
Are the EV chargers in our residents' car park "publicly accessible"?
HMRC's notice says a charge point is not publicly accessible if only the residents of a particular dwelling or dwellings can use it. If visitors, customers or the public can use it, it is publicly accessible. Which side your chargers fall on depends on who can actually use them.
Does this change the VAT on charging at home?
No. HMRC says electricity that is part of a household supply and used to charge a car at home is not an EV charging supply, even on a special tariff.
Is this law already in force?
Yes. The legislation took effect for supplies made on or after 1 November 2026. It applies UK-wide for VAT and the Climate Change Levy.
Sources
- HMRC: Revenue and Customs Brief 13 (2026): VAT and Climate Change Levy on electric vehicle charging for non-domestic use (28 October 2026)
- HMRC: VAT and Climate Change Levy on electric vehicle charging deemed not to be for domestic use (28 October 2026)
- HMRC: Fuel and power (VAT Notice 701/19), paragraph 3.1.1
This is general information about the law in England and Wales unless it says otherwise, not legal advice for your building. For advice, speak to a solicitor or ask us to introduce one of our partner firms.
