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 ruling, in the case of Northumbria Healthcare NHS Foundation Trust v Commissioners for His Majesty’s Revenue and Customs, found that an NHS trust is a taxable person for VAT purposes on car parking.
The Supreme Court ruled that NHS trusts are taxable for VAT on car parking, in a decision that could impact tax payments of up to £100 million.
- The case involved HMRC's refusal to repay £267,443 in VAT accounted for in car parking charges between 2013 and 2016.
- The Supreme Court justices, led by Lord Hodge and Lady Simller, granted HMRC's appeal against the Court of Appeal finding.
Author's summary: NHS trusts are taxable for VAT on car parking, impacting tax payments.