NHS Trusts: Subsidiary Companies

Department of Health written question – answered on 22nd November 2017.

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Photo of John Grogan John Grogan Labour, Keighley

To ask the Secretary of State for Health, how many subsidiary companies have been set up by NHS trusts; and what the purpose is of those companies.

Photo of John Grogan John Grogan Labour, Keighley

To ask the Secretary of State for Health, if he will publish the guidance issued by his Department to NHS trusts on the VAT payable for subsidiary companies set up by those trusts.

Photo of Philip Dunne Philip Dunne The Minister of State, Department of Health

Information on the number of subsidiary companies set up by National Health Service trusts is not collected centrally.

No specific VAT guidance has been issued by the Department in relation to the setting up of wholly owned subsidiary companies by NHS trusts. These companies are subject to normal VAT rules and as such no specific guidance is required. The tax affairs of subsidiary companies set up by NHS trusts will ultimately be an issue for the companies themselves to resolve with HM Revenue and Customs.

The Department’s Finance Director, Chris Young, wrote to NHS trust and foundation trust Finance Directors on 28 September 2017 to clarify the Department’s view on the use of tax advisors, with particular reference to tax avoidance. It should be noted that this letter was not issued with direct reference to any specific tax arrangements being entered into by the NHS.

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