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Thu, 23 Jul 2026

Thu, 23 Jul 2026 VAT cut to be applied to Manx electricity bills

The 0% rate from October will apply to domestic customers and eligible firms on the Isle of Man.

* VAT on domestic electricity bills in the Isle of Man will be reduced from 5% to 0% from October until March 2027.
* The move mirrors a similar measure in the UK, which is expected to last until the end of the 2026-27 financial year.
* A typical household can expect to save around £50 per year on their electricity bills as a result of the VAT reduction.
* The reduction will apply to both domestic customers and small businesses that already qualify for domestic energy VAT relief.
* Eligible charities and residential care homes will also benefit from the reduction.
* The Treasury estimates that the overall reduction in VAT revenue collected due to the change will be between £1 million and £1.4 million, depending on consumption during the winter.