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NHS: VAT

Asked by Justin MaddersLabourDepartment of Health and Social CareTabled Answered 13 March 2026UIN 118799

The question

To ask the Secretary of State for Health and Social Care, what response was provided by DHSC to the consultation by HM Treasury around changes to the VAT treatment of public bodies under Section 41 of the VAT Act.

Answered by Karin Smyth

The Department of Health and Social Care did not submit a formal response to HM Treasury’s consultation on proposed changes to the VAT treatment of public bodies under section 41 of the Value Added Tax Act 1994.

The consultation, VAT and the Public Sector: Reform to VAT Refund Rules, was published by HM Treasury on 27 August 2020 and closed on 19 November 2020.

As a central Government department, the Department of Health and Social Care engaged with HM Treasury and HM Revenue and Customs through cross-Government discussions to consider the potential implications of the proposals for the health and care system, including National Health Service bodies, rather than responding as a stakeholder in its own right.

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