Midlands Partnership University NHS Foundation Trust v CRC

20 January 2025 / Becky Hayes

Issue: 4969 / Categories: Comment & Analysis , Upper Tribunal , VAT treatment , VATA 1994 , VAT

A very significant decision

In Midlands Partnership University NHS Foundation Trust v CRC the Upper Tribunal (UT) addressed key issues as part of its judicial review regarding the VAT treatment of services provided by NHS trusts to local authorities.

In its decision delivered on 25 October 2024 the UT decided that the trust was offering health services to local authorities as part of a business activity. The UT found that the trust was being paid for its services and that the intention behind providing them was to obtain income. Further the UT ruled that the trust’s service provision was not subject to any special legal regulations.

In this article we explore the key points from the decision that are of particular significance for public sector bodies as it clarifies the boundary between non-business activities and business activities impacting its right to recover VAT incurred on costs....

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