Fuel Oil: VAT
Commons · Question 4634 · Tabled 29 May 2026 · Treasury · Official record
Answered 3 Jun 2026
Question
Asked by Claire Young
To ask the Chancellor of the Exchequer, what estimate her Department has made of the cost to the Exchequer of reducing the rate of VAT on domestic heating oil from 5 per cent to zero per cent.
Answer
Answered by Dan Tomlinson, 3 Jun 2026
HMRC does not hold information on the VAT revenue from domestic heating oil. This is because businesses are not required to provide a breakdown by product or service on their VAT returns, as this would impose an excessive administrative burden. Hence, we ...