HM Treasury has made the Value Added Tax (Refund of Tax to Great British Nuclear) Order 2026 (SI 2026/307). The instrument was made on 17 March 2026, laid before the House of Commons on 18 March 2026, and comes into force on 8 April 2026. It specifies that a company designated as Great British Nuclear under section 317 of the Energy Act 2023 is a “specified person” for the purposes of section 33E of the Value Added Tax Act 1994. (gov.uk)
Section 33E permits refunds of VAT incurred on non‑business activities to persons named by Treasury order and allows HMRC to determine how and when claims are to be made. Where purchases support both business and non‑business purposes, the law envisages apportionment so that only the non‑business element is refunded. (assets.publishing.service.gov.uk)
Section 317 of the Energy Act 2023 enables the Secretary of State to designate, by notice, a company limited by shares and wholly owned by the Crown as Great British Nuclear, with a power to revoke that designation. On 31 January 2024 the government published a notice confirming that British Nuclear Fuels Limited (company number 05027024) was designated as Great British Nuclear with effect from 00:00 on 31 January 2024. (legislation.gov.uk)
The Order adds Great British Nuclear to the bodies entitled to refunds under section 33E in respect of costs not incurred for the purposes of any business it carries on. HMRC guidance explains that, in practice, section 33E refunds are confined to VAT on contracted‑out services listed in the Treasury Direction made under section 41(3), unless the Treasury directs otherwise, and that such orders take effect prospectively only. (gov.uk)
For transactions within scope, the statutory scheme covers VAT charged on supplies to Great British Nuclear and VAT on imports and acquisitions it makes, subject to section 33E rules and any Treasury directions. Where goods or services have mixed business and non‑business use, an apportionment must be made before any refund is claimed. (assets.publishing.service.gov.uk)
Administration follows HMRC’s processes for section 33E bodies. If registered, the body includes the refund in Box 4 of the VAT return (and the related values in Box 7) and completes a VAT21; if not registered, claims are made on VAT126. HMRC also requires re‑registration onto the government departments system where section 33E status is granted, and claims should ordinarily be made in the financial year of the tax point. (gov.uk)
There is no change for suppliers: VAT should be charged under the normal rules. The refund mechanism sits with Great British Nuclear and HMRC. Where Great British Nuclear undertakes any business activity that gives rise to taxable supplies, the normal input tax rules apply; section 33E does not extend to VAT incurred for business purposes. (gov.uk)
HM Treasury typically publishes a Tax Information and Impact Note alongside section 33E orders; for example, the 2024 order for the Health Services Safety Investigations Body recorded a nil Exchequer impact and confirmed scope limited to non‑business support services. A comparable note is expected to be published on GOV.UK for this instrument. (gov.uk)