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HMRC has revised its policy on the zero rating for new buildings intended for use as care homes.
Revenue and Customs Brief 2/2017 sets out HMRC’s revised policy on the zero rating for new buildings intended for use solely as residential care homes after several cases examining the issue.
In Pennine Care NHS Trust (TC4998) the First-tier Tribunal held that the term ‘personal care’ must reflect current times and may go beyond the basics of feeding and washing.
As a result HMRC now accepts that personal care may go beyond a supportive and supervisory role to assist with living and may include therapeutic and clinical treatment that can alleviate or improve the condition of the individual.
When determining whether an institution is a care home or a hospital HMRC will consider whether there is provision for a person to be in residence for a lengthy period. Personal care may incorporate a high level of medical treatment if it is essential to the accommodation that is being provided. Care...
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