Was a mental health unit a ‘hospital or similar institution’?
In Pennine Care NHS Trust v HMRC [2016] UKFTT 222 (31 March 2016) the FTT found that a mental health unit did not fall within the definition of ‘hospital or similar institution’ (VATA 1994 Sch 8 Group 5 note 4).
The issue was whether the construction services and materials received by Pennine Care in the course of the construction of a mental health residential unit were zero-rated as supplies in the course of the construction of a building intended for use solely for a residential purpose. This would not be the case if the unit was intended for use as ‘a hospital or similar institution’.
Following General Healthcare Group (VATD 17129) the FTT noted that a number of factors could determine whether the unit was a hospital; and that all definitions of ‘hospital’ referred to medical treatment...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
Was a mental health unit a ‘hospital or similar institution’?
In Pennine Care NHS Trust v HMRC [2016] UKFTT 222 (31 March 2016) the FTT found that a mental health unit did not fall within the definition of ‘hospital or similar institution’ (VATA 1994 Sch 8 Group 5 note 4).
The issue was whether the construction services and materials received by Pennine Care in the course of the construction of a mental health residential unit were zero-rated as supplies in the course of the construction of a building intended for use solely for a residential purpose. This would not be the case if the unit was intended for use as ‘a hospital or similar institution’.
Following General Healthcare Group (VATD 17129) the FTT noted that a number of factors could determine whether the unit was a hospital; and that all definitions of ‘hospital’ referred to medical treatment...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
