Overview

This bill aims to allow charitable healthcare providers taking over NHS responsibilities to reclaim Value Added Tax (VAT) on supplies they use in the same way the NHS does. This ensures fair treatment and prevents charities from losing funding on VAT that the NHS would not pay.

Description

The Charitable Healthcare Providers (Value Added Tax Relief) Bill amends the Value Added Tax Act 1994. Specifically, it adds a clause allowing charities providing healthcare or welfare services under contract with the NHS (or a government department) since October 1st, 2011, to reclaim VAT on non-business supplies. This mirrors the VAT treatment afforded to the NHS itself for similar supplies. The bill clarifies that this applies to charities and wholly-owned subsidiaries that transfer their profits to a charity. The Commissioners of HMRC will only refund VAT attributable to these specific contractual obligations.

Government Spending

The bill is expected to reduce government spending by allowing charitable healthcare providers to reclaim VAT, thus lessening the financial burden on the government. The exact figure is not specified in the bill itself.

Groups Affected

• Charitable healthcare providers: Positively affected by receiving VAT refunds, leading to greater financial resources for healthcare services.
• NHS: Indirectly affected as it may transfer responsibilities to charities and see a reduced financial burden.
• HMRC (Her Majesty's Revenue and Customs): Responsible for processing VAT refund claims from qualifying charities.
• Government Departments: Potentially affected by the change in cost relating to contracted services with charities

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