From 8 April 2026, Great British Nuclear will be able to reclaim VAT on non‑business costs after the Treasury made and laid a new order this week. The Value Added Tax (Refund of Tax to Great British Nuclear) Order 2026 (SI 2026/307) sounds niche, but it matters for delivery timetables and who wins the work. ([]())

What it does is place the company designated as Great British Nuclear into the government’s section 33E refund scheme. That scheme lets certain public bodies claim back VAT on purchases linked to activities that aren’t part of a trading business - a long‑standing fix to stop VAT becoming a dead cost when the state is commissioning work. (gov.uk)

For early‑stage nuclear projects, that can take a real chunk out of the bill. With the VAT standard rate at 20%, a £10m package of surveys, design work and enabling works could otherwise carry up to £2m of irrecoverable VAT if classed as non‑business; under this order, GBN can claim that back and recycle the cash into the next contract. (rsmuk.com)

GBN was formally designated under the Energy Act 2023 on 29 January 2024 (taking effect from 31 January 2024). Since then it has steered the SMR technology process, with Rolls‑Royce SMR named preferred bidder in June 2025. Refund status should help the organisation move faster on site readiness and supply‑chain mobilisation. (assets.publishing.service.gov.uk)

The North is well placed to feel the benefit. Sheffield Forgemasters has MOUs in place with several SMR developers - including Rolls‑Royce, GE Hitachi and Holtec - for nuclear‑grade components, the sort of contracts made simpler when GBN isn’t carrying unrecoverable VAT on qualifying non‑business spend. (sheffieldforgemasters.com)

In West Cumbria, ministers unlocked land at Moorside on 10 June 2025 to be leased and marketed for clean energy development that may include SMRs. Aligning that move with a cleaner VAT position for GBN helps shorten the journey from feasibility work to shovel‑ready packages for local firms. (cumberland.gov.uk)

On Teesside and along the Lancashire coast, EDF’s decision to keep Hartlepool and Heysham 1 generating until March 2028 preserves skilled teams and site services while new projects are scoped - a practical bridge for regional contractors waiting on the next phase. (edfenergy.com)

There are guardrails. The refund applies only to non‑business activities under section 33E - it does not rewrite VAT rules for any commercial generation or sales GBN may undertake in future. Suppliers will still invoice with VAT as normal; the refund sits with GBN via HMRC’s scheme and Direction. (gov.uk)

For councils, colleges and SMEs lining up bids, the immediate ask is simple: expect procurement documents issued after 8 April to reference the new status, and make sure finance teams code qualifying spend correctly from day one so payments aren’t delayed.

Watch next: the Treasury says a Tax Information and Impact Note will be published in due course. For now, the switch is live from 8 April - a short order from Whitehall that could speed up contracts and keep more Northern money in Northern hands. ([]())