HMRC have made an amendment to ‘Contracted Out Services (COS) Heading 21 – Estate Management Services’ on 12th December 2017.

Whilst the overriding purpose of the heading remains unchanged, the content itself has been amended to provide additional clarity.

The salient points can be found below:

• Applicability to both leasehold and freehold has been confirmed
• Applicability to vacant properties has been confirmed
• Confirmation that separate recharges of utilities are excluded

Should you require any clarification with regards to a specific supply your organisation receives, please do not hesitate to contact our team of NHS VAT specialists on 01732 868 266.

Additional information: https://www.gov.uk/hmrc-internal-manuals/vat-government-and-public-bodies/vatgpb10150