Question to the HM Treasury:

To ask Her Majesty’s Government why private healthcare companies can claim tax relief on drug purchases but equivalents in the National Health Service cannot.

The supply of drugs is subject to Value-Added Tax (VAT) at the standard rate (20 per cent); however, no VAT is charged on drugs that are supplied on prescription and dispensed by a pharmacist.

Healthcare businesses, like high street pharmacies, supply drugs at the VAT zero rate where the pharmacist dispenses drugs on prescription direct to a patient. This includes NHS prescriptions and where drugs are delivered to patients’ homes. Any VAT incurred on the drugs would be recoverable by the pharmacy or the healthcare business.