The Chancellor announced in his Autumn Statement that he plans to give charitable hospices across the UK a rebate to cover VAT costs on certain non-business supplies.
The Fair Playing Field report by Monitor -published in March 2013 – recommended that the Government report on the case for extending VAT refunds to charitable hospices.
Welcoming the rebate, which is estimated to be worth over £4m annually, David Praill, Chief Executive of the charity Hospice UK, said:
“We are delighted the Chancellor has acted to close the VAT gap faced by charitable hospices which, unlike NHS providers, have been unable to reclaim VAT on many non-business supplies.
“This positive change will help relieve the considerable VAT burden on charitable hospices in the UK, enabling them to invest charitable funds in the delivery of front line care and help them reach more terminally ill people and their families.
“The announcement comes as hospices face increased demand for their care, as a result of the increasingly complex needs of Britain’s ageing population.
“Hospice UK, working with Sue Ryder and the Charity Tax Group, have been calling for this anomaly on VAT recovery to be addressed since 2011. It is only right that there is a level playing field between local hospice charities and other providers of palliative care. This rebate scheme recognises the unique contribution of charitable hospices to the health economy and also the invaluable support of local people who give their time to support hospices through fundraising and volunteering.
“We very much look forward to working with the Treasury and HMRC to successfully implement this new rebate scheme for hospices.”