VAT refund scheme for hospices
Hospice UK was 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.
At this stage the exact value of the refund is not certain, but in the supporting papers for the budget, the Office for Budgetary Responsibility estimate the value at £25m per year. Given the most recent hospice accounts report shows that government funding for independent hospices was £228m, this tax refund is equivalent to an increase in statutory funding for the 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.
Further details on the refund scheme can be found in our VAT refund scheme for hospices –detailed Q&A.