As many of you will probably know, NHSI have this week issued a short statement advising Trusts to put on hold any subsidiary plans until further notice.

It’s not clear whether this is related to the concern about such subsidiaries being considered abusive from a tax point of view, but we will update you as soon as there is any more information on this. NHSI intend to release further guidance on the matter next month.

In the meantime, if you do have any questions about the VAT implications of setting up a subsidiary – please don’t hesitate to contact a consultant at BB.