NHS Trusts and VAT on Car Parking
The Supreme Court has ruled that NHS trusts cannot reclaim car parking VAT, overturning a Court of Appeal decision.
The case, Northumbria Healthcare NHS Foundation Trust v Commissioners for His Majesty’s Revenue and Customs, involved a dispute over HMRC's refusal to repay VAT of £267,443 on car parking charges between 2013 and 2016.
The Supreme Court ruled that an NHS trust is a taxable person for the purpose of VAT on car parking.
This decision, led by Lord Hodge and Lady Simler, could apply to tax payments of up to £100 million.
The Court of Appeal had previously found that Northumbria Healthcare, as a public authority, was subject to a 'special legal regime' for VAT purposes, but this was overturned by the Supreme Court.
- The case involved VAT on car parking charges between 2013 and 2016.
- The disputed amount was £267,443.
- The decision could affect tax payments of up to £100 million.
Author's summary: NHS trusts are taxable persons for VAT on car parking.