VAT refund scheme for hospices
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 new scheme is effective from 1 April 2015.
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 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.
Further details on the refund scheme can be found here.
The guidance was last updated in December 2018, following a change to the treatment of Continuing Care Funding.
Hospice UK is grateful to our specialist hospice VAT technical advisor, Peter Ladanyi, who can be contacted at: http://vat-help.co.uk/