Drugs: VAT
2026-05-31 · Treasury · 5411 · Official question
Question
To ask the Chancellor of the Exchequer, what engagement she has undertaken with families, clinicians and charities to discuss the impact of VAT on compassionate access programme medicines.
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...