§ Mr. GibbTo ask the Chancellor of the Exchequer what his policy is regarding the recovery of VAT by(a) doctors' surgeries and (b) local patients' participation groups on the purchase of medical equipment. [17386]
§ Mr. BoatengUnder longstanding agreements governing EC and UK VAT law VAT can only be recovered to the extent that it relates to taxable activities. Purchases of medical equipment by doctors for use in their surgeries, including through local patient participation groups, are not connected with the making of taxable supplies and cannot therefore be recovered.