"HMRC had begun issuing VAT demands to pharma companies on the basis that supplying these medicines, even gratis, constituted a taxable transaction. Industry leaders have argued the interpretation is not only commercially punishing but threatens to undermine the UK's hard-won reputation as a destination of choice for clinical research."
"At the heart of the dispute are post-clinical trial continuity of care and compassionate use schemes, arrangements designed to bridge the gap for patients with life-threatening or severely debilitating conditions who require access to medicines that have yet to secure marketing authorisation or NHS funding."
HM Revenue & Customs has paused the enforcement of VAT on free medicines provided to seriously ill patients amid concerns from pharmaceutical companies. The decision follows Bayer's halt of new patient enrolments in its UK compassionate use scheme, raising fears of limited access to therapies for vulnerable patients. The dispute centers on the classification of these free supplies as taxable transactions, which industry leaders argue could damage the UK's reputation in clinical research. The Association of the British Pharmaceutical Industry is advocating for VAT exemption on clinically justified free supplies.
Read at Business Matters
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