§ Mr. BurstowTo ask the Chancellor of the Exchequer (1) what assessment he has made of the impact of the decision of the London VAT tribunal in the Kingscrest case on the implementation of free nursing care and the affordability of fee levels; [71678]
(2) if he will amend VAT regulations relating to the VAT status of care homes. [71508]
§ John HealeyIn March the High Court judgment in the Kingscrest Associates Ltd. and Montecello Ltd. case threatened to limit the VAT exemption for residential care. We immediately acted to put this exemption beyond question through the Value Added Tax (Health and Welfare) Order (Statutory Instrument 762/2002).
823WThe decision of the VAT and Duties Tribunal in this case, and the later High Court judgment, do not impact upon any provision of nursing care.