Written Question·Treasury·UIN 70026

Carbon Emissions: VAT

Tabled: 22 July 2025
Answered: 5 September 2025

Question

Edward Morello

Liberal Democrat — West Dorset

To ask the Chancellor of the Exchequer, what recent discussions she has had with (a) HMRC and (b) stakeholders on the VAT treatment of voluntary payments made to international carbon offsetting projects.

Answer

Dan Tomlinson
HMRC engaged with stakeholders prior to clarifying the policy on the VAT treatment of voluntary carbon credits in 2024. As of 1 September 2024, payments made to non-statutory carbon offsetting projects for the purchase of voluntary carbon credits are in t...
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