David Bedenham KC and Max Schofield in VAT medical exemption success
David Bedenham KC and Max Schofield were instructed on behalf of the taxpayer in an appeal concerning the VAT liability of supplies under the medical care exemption.
The taxpayer operated under an “apex” or “lead” provider contract with the NHS, sub-contracting services to local medical practitioners. HMRC’s position was that the taxpayer was not supplying exempt medical care as it was not providing the care itself with medically registered staff, and that it made standard-rated supplies of administrative services. This would result in an increased cost to the NHS.
David and Max drafted various documents on behalf of the taxpayer (including grounds of appeal to the FTT and written submissions) setting out detailed arguments in relation to the correct interpretation of the medical care exemption under Item 1 of Group 7 in Schedule 9 to the VATA 1994 (transposing Article 132(1)(c) of the Principal VAT Directive) in light of the domestic and European case law. These documents also addressed the NHS’ Increased Capacity Framework contracts and guidance.
Ultimately, HMRC accepted the taxpayer’s position and conceded that the supplies were exempt avoiding the need for a hearing before the FTT.
If you would like to instruct David or Max on a tax dispute, please contact Glenn Billenness or Rob Adams.
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