Measure
The government has announced a new zero-rating, to apply to donations of medicines in “qualifying circumstances”, including through early and expanded access schemes. This will remove any VAT cost arising under the deemed supply provisions in relation to the donation of the goods.
Pharmaceutical companies and others donating medicines for no charge and the recipients, including the NHS.
23 June 2026.
The potential for a VAT cost to arise where medicines were made available free of charge had received scrutiny in the press and was discussed in Parliament earlier in the year. The introduction of a relief had been expected following a response by the Exchequer Secretary to the Treasury to an oral question in the House of Commons on 23 June 2026, and this measure is giving effect to the policy, though detail is still required on what will be considered “qualifying circumstances”.