Treatment of supplies of electricity and piped gas: first time connection to mains power - position on or after 1 January 2012
The current concessionary arrangement described in VFUP3200 will be withdrawn with effect from 1 January 2012. This is because there are no vires in EU law which would permit this ESC to be introduced in UK legislation.
After the concession is withdrawn, first time connection to electricity or gas will be subject to the reduced rate of VAT if the utility is for domestic or non-business charity use and the connection charge is made by a person who supplies the fuel.
Charges made by caravan site owners and houseboat mooring providers for first time connection to electricity, gas, water and sewerage will be subject to the same VAT liability as the caravan pitch or mooring (standard rated or exempt, depending on the circumstances) unless the site owner or mooring provider can identify the actual consumption of users (i.e. through metering), in which case, the connection charge will be subject to the same VAT liability as the supply of the utility (reduced rated for electricity and gas, zero rated for water and sewerage).