ChargeUK, a lobbying group representing the UK’s electric vehicle (EV) charging industry, has warned that upcoming changes to business tax rules could impose new costs on operators of public charging stations. The group said the Valuation Office Agency (VOA) is preparing to apply business rates to charging bays from next April, ending the sector’s previous tax exemption, The Guardian reported.
Business rates are a form of property tax applied to most commercial premises in the UK, helping fund local services. While petrol stations, car parks, and shops have long been subject to these taxes, EV charging bays have been exempt, treated separately from other public facilities. The new policy would make operators liable for business rates for the first time.
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According to ChargeUK, the change could affect up to 64,000 charging bays, potentially resulting in a combined tax bill of about £100 million. The group warned that if these additional costs are passed to users, EV drivers could see their annual charging expenses rise by as much as £300. The VOA, however, has reportedly estimated the total impact at around £25 million — a figure ChargeUK disputes, arguing that the agency has underestimated the number of affected sites.
ChargeUK Chief Executive Vicky Read told The Guardian the tax could “be the straw that breaks the camel’s back” for the industry, calling for government intervention to remove what she described as an unexpected financial burden. She urged officials to address both the proposed business rates and other high costs faced by the sector, including electricity standing charges and VAT disparities.
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The VOA said it has “a statutory duty to maintain non-domestic rating lists” and must assess any property that meets the legislative criteria for taxation. The Treasury has not yet commented on the potential change.