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<p>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.</p><p> </p><p>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.</p>
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