We provided detailed advice to a Trust and an associated Charity to identify and quantify the VAT implications with regard to the proposed development by the Charity to construct, equip and provide a PET/CT scanning facility on the hospital site.
The aim of the Charity was to develop a PET/CT facility on the Trust’s site at an estimated cost of £2m for building works and £1.7m for equipment.
The facility was owned by the charity which entered into a ground lease with the Trust. From the opening of the facility from April 2013 to April 2015, clinical services were provided by a third-party healthcare provider. The service will be tendered from April 2015 and awarded to the same or a new provider, which could be the Trust. The Charity would lease the facility to the provider.
The scope of our advisory work included (but was not limited to) consideration, review and advice in respect of:
- The VAT status of the Charity, in terms of its registration(s), etc
- Potential for any charitable VAT reliefs that may be available
- VAT liability of supplies to be made by the Charity to the Provider
- VAT treatment of other activities of the Charity which may have an impact
- Land & property VAT issues of all parties
- VAT liability of the Provider’s supplies
- Potential for VAT recovery by the NHS end users (e.g. under COS rules or as input tax)
- VAT treatment of supplies made by the Trust to the Provider or Charity
- Impact of supplies made by the Trust on the Trust’s overall VAT position
- Meeting with relevant Trust and/or other parties
- Reviewing current/proposed contracts and proposals
- Written report outlining our advice, options, etc
- Correspondence with HMRC and/or negotiations with HMRC
- Obtaining HMRC approval as necessary