Written Question·Treasury·UIN 94450

NHS Trusts: VAT

Tabled: 25 November 2025
Answered: 1 December 2025
Named Day

Question

Helen Morgan

Liberal DemocratNorth Shropshire

To ask the Chancellor of the Exchequer, what assessment she has made of the adequacy of legislation regarding VAT and the NHS following the First-tier Tribunal's ruling in the case of Isle of Wight NHS Trust v HMRC [2025] UKFTT 1114 (TC).

Answer

Dan Tomlinson
The government is carefully considering the impact of the Isle of Wight decision on the VAT treatment of the supply of temporary medical staff. HMRC will publish updated guidance in due course.