Medical services
HMRC are carrying out a three-month consultation entitled 'VAT: A review of the scope of the VAT exemption for medical services'. This is to gather information about the activities of health professionals, and the impact that the European Court of Justice decision in the case of Dr Peter d'Ambrumenil and Dispute Resolution Services (C-307/01) [2005] STC 650 may have on the health sector and its clients. Primary health care and treatment of patients will continue to be free of VAT; they are not affected by this consultation.
The d'Ambrumenil decision concerned the VAT exemption for 'medical care', as provided by registered health professionals. The ECJ held that this exemption is restricted to services which are intended principally to protect, including maintain or restore, the health of an individual.
The consultation document can be obtained from www.hmrc.gov.uk. All responses must be received by 16 December 2005.
HMRC Business Brief 18/05 dated 16 September 2005
Fraud procedures
HMRC have explained their new single civil investigations of Fraud procedure, replacing the former Inland Revenue's Hansard procedures and all former Customs' evasion procedures, apart from Customs duties civil evasion penalties applied to travellers at port and airport controls.
The new procedure came into effect on 1 September 2005 for new cases. Existing cases will be worked to a conclusion under the old procedures. Initially the new procedure will only be used by officers serving in HMRC Special Civil Investigations. Use by other specialist teams within HMRC is under consideration.
This topic has been covered in this week's issue of Taxation. See 'Hansard RIP' by Chris Oates and Ed Dwan, page 686.
HMRC Business Brief 18/05 dated 16 September 2005
