HMRC’s revised guidance regarding personal care

HM Revenue & Customs (“HMRC”) has revised its policy on the definition of ‘personal care’ for the purposes of deciding whether a new building can qualify for zero-rating as a care home, or alternatively whether it should be treated as the standard-rated construction hospital.


Following the decision of the First-tier Tribunal in Pennine Care NHS Trust, HMRC now accept that besides providing for lengthy periods of residence, ‘personal care’ in a care home may also involve a high level of medical treatment. A treatment centre incorporated within a care home and used at least 95% of the time by the residents of that home will qualify for zero-rating.


If you believe that your business or your clients business may be able to recover VAT paid on supplies which would have been eligible for zero-rating under the revised policy – please call our free helpline to discuss the best way forward.

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