United Kingdom Introduces Retroactive VAT Zero Rate for Donated Medicines

The UK will introduce a new VAT zero rate for medicines donated free of charge in qualifying circumstances.
The relief covers medicines donated for NHS treatment, under early access arrangements, for clinical trials, and for continued patient treatment after clinical trials.
Although legislation will be in Finance Bill 2026–27, the zero rate applies retrospectively from 23 June 2026.
Businesses that accounted for output VAT on qualifying donations since that date may be able to amend VAT returns and recover the VAT.
The relief is subject to specific conditions, including certification requirements.

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.