Drugs: VAT
2026-05-31 · Treasury · 5409 · Official question
Question
To ask the Chancellor of the Exchequer, what recent discussions her Department has held on the alteration of VAT to palliative care medicines supplied free of charge for children.
Answer
Under UK VAT law, some transactions where no money changes hands are treated as if a supply has been made - these are called deemed supplies. This is to keep the system fair if a business has reclaimed VAT on costs. Whether VAT applies to medicines or tre...