Hospice UK were delighted to secure the introduction of a VAT refund scheme for hospices across the UK, which was passed into law as part of the Finance Act 2015 at the end of March. The scheme is effective from 1 April 2015.
What is the scheme?
The value of the refund scheme is estimated at £20-£25M per year. This tax refund is equivalent to an increase in statutory funding for the hospice sector of around 10%.
It is also genuinely new money, for which only charitable hospices are eligible, and because it is linked to expenditure, if costs rise due to inflation then the level of the refund would also rise. The rebate scheme is a UK wide scheme, and applies to both adult’s and children’s hospices.
We will continue to liaise with HMRC over the operation of the scheme.
Guidance on tax issues
Finance Support for Hospices
Hospice UK aims to help share useful information and resources and encourage a supportive network of colleagues at hospices who have financial responsibilities.