Asked by: Luke Evans (Conservative - Hinckley and Bosworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had with the Secretary of State for Health and Social Care on the potential impact of VAT policy on compassionate medicines access.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
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 treatments provided for free depends on the precise facts of each case.
The Government is aware of the issue you raise in the context of free-of-charge medicines and, recognising the importance of patients across the UK having access to innovative medicines, I want to see this issue resolved quickly. The Government is in discussions with relevant stakeholders including the life sciences sector on this matter.
Given these ongoing discussions, I understand that HMRC will use its discretion to extend certain deadlines and suspend collection of tax if a taxpayer has requested a statutory review. This does not mean that HMRC has changed its view of past tax liabilities. Individual taxpayers should speak directly to HMRC on their specific circumstances.
HMT does not hold information on VAT revenue from free-of-charge medicines. Businesses are not required to provide a breakdown by product or service on their VAT returns as this would impose an excessive administrative burden.
Asked by: Luke Evans (Conservative - Hinckley and Bosworth)
Question to the HM Treasury:
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.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
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 treatments provided for free depends on the precise facts of each case.
The Government is aware of the issue you raise in the context of free-of-charge medicines and, recognising the importance of patients across the UK having access to innovative medicines, I want to see this issue resolved quickly. The Government is in discussions with relevant stakeholders including the life sciences sector on this matter.
Given these ongoing discussions, I understand that HMRC will use its discretion to extend certain deadlines and suspend collection of tax if a taxpayer has requested a statutory review. This does not mean that HMRC has changed its view of past tax liabilities. Individual taxpayers should speak directly to HMRC on their specific circumstances.
HMT does not hold information on VAT revenue from free-of-charge medicines. Businesses are not required to provide a breakdown by product or service on their VAT returns as this would impose an excessive administrative burden.
Asked by: Luke Evans (Conservative - Hinckley and Bosworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate her Department has made of how much money it would expect to gain through the application of VAT to compassionate medicine programmes.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
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 treatments provided for free depends on the precise facts of each case.
The Government is aware of the issue you raise in the context of free-of-charge medicines and, recognising the importance of patients across the UK having access to innovative medicines, I want to see this issue resolved quickly. The Government is in discussions with relevant stakeholders including the life sciences sector on this matter.
Given these ongoing discussions, I understand that HMRC will use its discretion to extend certain deadlines and suspend collection of tax if a taxpayer has requested a statutory review. This does not mean that HMRC has changed its view of past tax liabilities. Individual taxpayers should speak directly to HMRC on their specific circumstances.
HMT does not hold information on VAT revenue from free-of-charge medicines. Businesses are not required to provide a breakdown by product or service on their VAT returns as this would impose an excessive administrative burden.
Asked by: Luke Evans (Conservative - Hinckley and Bosworth)
Question to the HM Treasury:
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.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
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 treatments provided for free depends on the precise facts of each case.
The Government is aware of the issue you raise in the context of free-of-charge medicines and, recognising the importance of patients across the UK having access to innovative medicines, I want to see this issue resolved quickly. The Government is in discussions with relevant stakeholders including the life sciences sector on this matter.
Given these ongoing discussions, I understand that HMRC will use its discretion to extend certain deadlines and suspend collection of tax if a taxpayer has requested a statutory review. This does not mean that HMRC has changed its view of past tax liabilities. Individual taxpayers should speak directly to HMRC on their specific circumstances.
HMT does not hold information on VAT revenue from free-of-charge medicines. Businesses are not required to provide a breakdown by product or service on their VAT returns as this would impose an excessive administrative burden.
Asked by: Luke Evans (Conservative - Hinckley and Bosworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how long the current pause in applying VAT to compassionate medicines programmes will remain in place.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
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 treatments provided for free depends on the precise facts of each case.
The Government is aware of the issue you raise in the context of free-of-charge medicines and, recognising the importance of patients across the UK having access to innovative medicines, I want to see this issue resolved quickly. The Government is in discussions with relevant stakeholders including the life sciences sector on this matter.
Given these ongoing discussions, I understand that HMRC will use its discretion to extend certain deadlines and suspend collection of tax if a taxpayer has requested a statutory review. This does not mean that HMRC has changed its view of past tax liabilities. Individual taxpayers should speak directly to HMRC on their specific circumstances.
HMT does not hold information on VAT revenue from free-of-charge medicines. Businesses are not required to provide a breakdown by product or service on their VAT returns as this would impose an excessive administrative burden.
Asked by: Luke Evans (Conservative - Hinckley and Bosworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what categories of compassionate or expanded access scheme medicines are currently within the scope of VAT.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
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 treatments provided for free depends on the precise facts of each case.
The Government is aware of the issue you raise in the context of free-of-charge medicines and, recognising the importance of patients across the UK having access to innovative medicines, I want to see this issue resolved quickly. The Government is in discussions with relevant stakeholders including the life sciences sector on this matter.
Given these ongoing discussions, I understand that HMRC will use its discretion to extend certain deadlines and suspend collection of tax if a taxpayer has requested a statutory review. This does not mean that HMRC has changed its view of past tax liabilities. Individual taxpayers should speak directly to HMRC on their specific circumstances.
HMT does not hold information on VAT revenue from free-of-charge medicines. Businesses are not required to provide a breakdown by product or service on their VAT returns as this would impose an excessive administrative burden.
Asked by: Luke Evans (Conservative - Hinckley and Bosworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she will assess the potential impact of postponing the proposed increase in fuel duty on the farming community.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
As announced on 20 May, to support farmers, the government will cut the duty rate on red diesel by over a third per litre from 10.18p to 6.48p, the lowest rate in over 20 years. This lower rate will take effect from 15 June and remain in place until the end of the year.
This is on top of extending the temporary duty cut for red diesel until the end of the year, a proportionate percentage cut of the wider 5p cut to the main duty rates on petrol and diesel.
Asked by: Luke Evans (Conservative - Hinckley and Bosworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to monitor the work of the Fraud Prevention Centre to help ensure investigations are completed in a timely and efficient manner.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Fraud Prevention Centre (FPC) has been set up to strengthen defences against identity‑based fraud and improve coordination of prevention, detection and response across the department. It is bringing together previously decentralised activity into a single, accountable function, to improve oversight, consistency of investigations, and support for affected customers. As the capability matures, the operation of the FPC continues to be monitored as it embeds within HMRC’s wider fraud response.
Asked by: Luke Evans (Conservative - Hinckley and Bosworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 20 April 2026 to Question 125241 on Gyms and Leisure Centres: Business Rates, whether fiscal pressures from business rates have recently been raised by leisure centre and gym sector representatives in meetings with (a) Treasury Ministers and (b) officials.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The sector was engaged as part of the recent Call for Evidence on business rates and investment, which closed on 18 February. The Government is carefully considering representations it has received, and a response to the Call for Evidence will be published in due course.
The sector was also engaged ahead of the Transforming Business Rates: Interim Report, published in September 2025: https://www.gov.uk/government/publications/transforming-business-rates-interim-report/transforming-business-rates-interim-report
Asked by: Luke Evans (Conservative - Hinckley and Bosworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 20 April 2026 to Question 125241 on Gyms and Leisure Centres: Business Rates, on what date did (a) HM Treasury Ministers and (b) officials last meet with representatives from the gyms and leisure centre sector.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The sector was engaged as part of the recent Call for Evidence on business rates and investment, which closed on 18 February. The Government is carefully considering representations it has received, and a response to the Call for Evidence will be published in due course.
The sector was also engaged ahead of the Transforming Business Rates: Interim Report, published in September 2025: https://www.gov.uk/government/publications/transforming-business-rates-interim-report/transforming-business-rates-interim-report