Written Question·Treasury·UIN 18478

Drugs: VAT

Tabled: 13 July 2026
Answered: 16 July 2026

Question

Mr Joshua Reynolds

Liberal DemocratMaidenhead

To ask the Chancellor of the Exchequer, what steps her Department is taking to review the VAT treatment of medicines supplied free of charge to patients under early access schemes.

Answer

Dan Tomlinson
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. This is a core and longstanding feature...

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