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Written question asked by David Drew (Labour) on Monday, 26 February 2018, in the House of Commons. It was due for an answer on Wednesday, 28 February 2018. It was answered by Mel Stride (Conservative) on Tuesday, 6 March 2018 on behalf of the Treasury.

NHS Trusts: Taxation

Question

To ask Mr Chancellor of the Exchequer, what recent discussions he has had with the Secretary of State for Health and Social Care on the (a) tax affairs of NHS trusts and (b) operation of such trusts' subsidary companies.

Answer

  • In line with the practice of successive administrations, details of ministerial discussions are not normally disclosed.

  • The Department for Health and Social Care wrote to the finance directors of all NHS Providers last year to remind them of their responsibilities around tax. The government is clear that tax avoidance arrangements must not be entered into under any circumstances.

  • NHS organisations can decide locally what structures are most appropriate to deliver services to patients, including setting up subsidiary companies. Under any arrangements, Trusts must operate within existing VAT legislation and offer NHS pay, terms and conditions of service to staff that are transferred to these companies.

Secondary information

Type
Written question
Reference
129621
Session
2017-19
Subjects
NHS trusts Taxation Subsidiary companies
Link
View this Written question on www.parliament.uk