Part V8 HMRC Notices | Commentary

701/2/11 Welfare

Part V8 HMRC Notices | Commentary


June 2011

This notice cancels and replaces Notice 701/2 (February 2007)

1 Introduction

1.1 What is this notice about?

This notice explains—


    —     What welfare services and goods relating to supplies of welfare are exempt.


    —     Who can exempt the supply of welfare services and goods, relating to supplies of welfare services.

You can find details of supplies made in health institutions, such as hospitals and hospices, in Notice 701/31 “Health institutions” (Part V8).

You can find details of supplies made by health professionals other than in an institution in Notice 701/57 “Health professionals” (Part V8).

Main narrative treatment—V4.146.

1.2 What's changed?

This notice replaces the 2007 edition of Notice 701/2 “Welfare”. It has been restructured and updated to improve readability and reflect the withdrawal of Extra Statutory Concession 3.37 VAT: Exemption for supplies of welfare services by private welfare agencies pending registration. It also includes a section on supplies of staff and provides clarification of the evidence required to demonstrate charitable status.

1.3 Who should read this notice?

You should read this notice if you—


    —     supply or purchase care, treatment, welfare advice or instruction services


    —     supply or purchase services relating to the provision of spiritual welfare or


    —     are the recipient of any of the above services.

1.4 What law is covered in this notice?

VATA Sch 9, Group 7 provides that supplies of welfare services and connected goods by charities, state-regulated private welfare institutions or agencies, or public bodies are VAT exempt. This Group also provides that certain supplies made by a religious community to its resident members

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial