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Barts Health NHS Trust Loses VAT Case Against HMRC

A lengthy legal battle ends in defeat for Barts Health NHS Trust. The Supreme Court ruling clarifies VAT status for hospital car parking fees, affecting other NHS Trusts.

In this image there is a parking are in that area cars are parked.
In this image there is a parking are in that area cars are parked.

Barts Health NHS Trust Loses VAT Case Against HMRC

Barts Health NHS Trust has lost a significant Supreme Court case against HMRC. The dispute revolved around VAT charges on hospital car parking fees, with the Trust appealing for over five years.

Initially, Barts Health NHS Trust argued it should not pay VAT on visitor, patient, and staff parking charges, claiming it was 'acting as a public authority' under a Special Legal Regime. However, the Supreme Court ruled against this interpretation, stating the Trust did not qualify for the exemption.

The lengthy legal battle involved multiple courts before culminating in the Supreme Court's final decision. As a result, the Trust's claim for VAT repayment of £267,443.92 was denied, leaving the Trust to bear the financial burden of the VAT charges.

The Supreme Court's ruling has clarified the VAT status of hospital car parking fees, potentially impacting other NHS Trusts. Barts Health NHS Trust must now comply with the VAT charges, with the £267,443.92 repayment claim dismissed.

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