Although the details of the new Hospice VAT refund are not yet confirmed there are a few points that HMRC have made clear.

The first is that it will be a refund targeted at charities. If you run a hospice or provide palliative care services and are not a charity then you will not qualify for relief. Fortunately most UK hospices are run by charities.

The second is that the provision of hospice care will need to be essentially all that the charity does. Charities with wider objectives and which undertake other wider types of work may need to restructure.

Finally a section 33 refund will only apply to non business VAT. Palliative care services provided under contract are not expected to qualify. Quite what this means for the recent NHS Palliative care funding proposals which imply a movement towards contract funding is a question that will need to be addressed after the budget.