- The First-tier Tribunal ruled in favor of Clatterbridge Pharmacy Limited against HMRC regarding VAT relief on cancer treatment medicines.
- Clatterbridge Pharmacy applied zero-rate VAT relief for drugs dispensed to named patients for personal use.
- HMRC argued the relief was invalid as drugs were administered by healthcare professionals, not self-administered by patients.
- The tribunal rejected HMRC’s interpretation, stating the medicines were for the sole use of named individuals, qualifying for zero-rating.
- The decision emphasized the importance of interpreting statutory language in its natural and ordinary meaning.
- The ruling follows a similar case, Healthcare at Home, where HMRC also lost.
- The decision is beneficial for pharmacy providers and NHS subsidiaries relying on zero-rating for cost management.
- HMRC may still appeal the decision.
Source: rsmuk.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.
