Provide for charitable healthcare providers taking on new responsibilities
from the National Health Service to be able to recover value added tax on the
same non-business supplies as the NHS in respect of those responsibilities;
and for connected purposes.
Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and
consent of the Lords Spiritual and Temporal, and Commons, in this present
Parliament assembled, and by the authority of the same, as follows:—
(1) The Value Added Tax Act 1994 is amended as follows.
(2) After section 41(8) insert—
For the purposes of subsection (6) above a charity shall be regarded as
a body of persons exercising functions on behalf of a Minister of the
Crown if it is providing, under a legal obligation (contractual or
otherwise) entered into on or after 1 October 2011, healthcare or welfare
services, or goods associated with such services, either to a body within
subsection (7) above or to a Government department.
The Commissioners shall refund to a charity only such VAT chargeable
to the charity as is attributable to the charity’s legal obligation under
subsection (9) above.
For the purposes of subsections (9) and (10) a “charity” includes a body
corporate that is wholly owned by a charity if—
the body has agreed in writing (whether or not contained in a
deed) to transfer its profits (from whatever source) to a charity,
the body’s profits (from whatever source) are otherwise
payable to a charity.”
Charitable Healthcare Providers (Value Added Tax Relief) BillPage 2
This Act may be cited as the Charitable Healthcare Providers (Value Added
Tax Relief) Act 2011.
This Act comes into force at the end of the period of 2 months beginning with
the day on which it is passed.