Taxation (Energy and Vehicles) Bill 2026-27

The Taxation (Energy and Vehicles) Bill 2026-27 (bill 103 of 2026-27) was introduced on 24 June 2026.

The bill with its explanatory notes is published on the bill’s page on Parliament.uk. The page also provides details of the bill’s parliamentary progress.

What is the purpose of the bill?

The bill makes provision for three tax measures:

• an increase the rate of the Electricity Generator Levy (EGL) from 45% to 55% from 1 July 2026
• an increase in the rate of Approved Mileage Allowance Payments (AMAPs) with effect from the start of the current tax year (2026/27)
• the introduction of a temporary 12-month Vehicle Excise Duty (VED) exemption for certain heavy goods vehicles (HGVs) to apply from 1 July 2026 to 30 June 2027.

The government had announced the first of these measures, the increase in the rate of the EGL, on 21 April.

The other two measures were announced on 20 May and 21 May as part of the government’s response to the impact of the US/Israel-Iran conflict on energy prices and the cost of living.

When will the bill be considered by the House of Commons?

In his business statement on 18 June, the Leader of the House Sir Alan Campbell announced that all stages of the Taxation (Energy and Vehicles) Bill would be taken on 1 July 2026.

If the bill passes its stages in the Commons, it will then go to the House of Lords for formal consideration. However, the Lords do not have the power to amend tax legislation due to the financial privilege of the Commons.