Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Exemption does not apply to daycare services supplied by private bodies in England and Wales

21 June 2021
Issue: 4797 / Categories: News

HMRC has confirmed that the VAT exemption for welfare services does not apply to private welfare institutions or agencies which supply daycare services to vulnerable adults in England and Wales and are not state-regulated.

This comes in light of the Court of Appeal decision in the joint appeals of LIFE Services Ltd and The Learning Centre (Romford) Ltd [2020] STC 898 and the Supreme Court’s decision to refuse leave to appeal.

The provision of welfare services by private bodies that are not charities is exempt from VAT only if the body concerned is a state-regulated private welfare institution or agency (VATA 1994 Sch 9 group 7 item 9). Note (8) to group 7 defines ‘state-regulated’ as ‘approved licensed registered or exempted from registration by any minister or other authority pursuant to a provision of a public general Act’.

The Court of Appeal held...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon