Judicial Review Grants Royal Surrey NHS Foundation Trust VAT Concession for Linac Purchase

• The Royal Surrey NHS Foundation Trust received a grant of £4.1m to purchase two Linac radiotherapy machines in 2017/18.
• The machines were purchased by the NHS’s central procurement entity and provided to Royal Surrey.
• Royal Surrey decided to lease the machines to a new subsidiary, Healthcare Partners Ltd (HPL), which would provide a managed radiotherapy facility.
• Royal Surrey expected to recover VAT on the purchase of the machines as they were to be used for business purposes.
• The NHS operates as a divisional VAT registration and does not charge VAT on supplies to Royal Surrey.
• However, HMRC objected to the application of the VAT concession in this case.
• The High Court has allowed Royal Surrey’s application for judicial review and declared that they are entitled to the benefit of the concession.
• The Court found that Royal Surrey had clearly changed its intention and intended to use the machines for business purposes.

Source: taxscape.deloitte.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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