A parliamentary question and Treasury response have clarified that paid entries in UK prize draws are not exempt from VAT and will be taxed at the standard 20% rate. The voluntary code of conduct for prize draw operators, aimed at improving consumer protection, will take full effect on 20 May 2026. The sector is valued at £1.3 billion annually.
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Energy Digital · about 7 hours ago
UK: New Prime Minister Andy Burnham will cut VAT on electricity bills from the start of October, exempting households in England, Scotland and Wales for six months. The measure will reduce average household bills by about £45 and cost the Treasury roughly £850m this financial year.
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Guardian · 1 day ago
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VatCalc · 1 day ago
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The Independent · 2 days ago
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The Independent · 2 days ago
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Key Takeaways
On 17 February 2026, HMRC confirmed that paid entries in prize draws are subject to the standard 20% VAT rate.
The code takes full effect on 20 May 2026, requiring signatories to implement it by that date.
The market is estimated at £1.3 billion annually.
Primary source
Read the full article at Pinsent MasonsThis summary was published on VATfaqs.com on 6 March 2026. It relates to VAT developments in United Kingdom. The original source is Pinsent Masons.
