NHS Trust wins car parking VAT battle at Court of Appeal

Since May 2017, Northumbria Healthcare NHS Foundation Trust, with Liaison Financial’s support, has challenged HMRC’s view that VAT is chargeable at the standard rate for charges levied for car parking at sites operated by the NHS.

This long-running claim has numerous Trusts stayed behind it, with the total tax at stake for past periods in the region of £70m.

The NHS Trust has won this case against HMRC, with the Court of Appeal concluding that car parking income should not be treated as standard rated for VAT.

We now have a limited window of opportunity to submit HMRC claims or bring existing claims up to date. Please contact our VAT team as soon as possible for further information and assistance on raising a claim for NHS-operated car parking sites to reclaim past paid VAT.

This is a breakthrough for the NHS working in partnership with Liaison, and we are pleased to continue providing our support and expertise to benefit NHS organisations.