Written questions by Lopez.

Whether her Department has directed HMRC to review the application of VAT upon medicines supplied free-of-charge via EAMS and other compassionate access schemes.

VAT is the UK’s second largest tax, forecast to raise £180 billion in 2025/26. Taxation is a vital source of revenue which helps to fund public services. The Early Access to Medicines Scheme (EAMS) allows patients access to free medicines for life threatening conditions before receiving full NHS approval. Under UK VAT law, some transactions where no money changes hands are treated as if a supply has been made – these are called deemed supplies. This is to keep the system fair. If a business has reclaimed VAT on costs (like making or importing goods), it should not avoid accounting VAT when those goods leave the business for free. Whether VAT applies to medicines or treatments provided for free under the EAMS will depend on the precise facts of the case. In certain circumstances the giving of goods away for free can be outside the scope of VAT. Where the supply is within the scope of VAT a relief may apply, meaning the supply can be made VAT free.

What estimate her Department has made of the cost to the economy of recent outages of large-scale cloud providers.

I refer the member to the answer given to UIN 92928 on 24 November 2025.

Whether she has made an assessment of the potential impact of introducing VAT to to medicines provided free under Early Access Medicines Scheme programmes on pharmaceutical companies.

I refer the honourable member to the answer that I gave to PQ UIN: 87051.

What assessment (a) her Department and (b) HMRC have conducted on the potential impact on patient access to innovative medicines from the introduction of VAT to medicines provided free under Early Access Medicines Scheme programmes.

VAT is the UK’s second largest tax, forecast to raise £180 billion in 2025/26. Taxation is a vital source of revenue which helps to fund public services. Early Access to Medicines Scheme (EAMS) allows patients access to free medicines for life threatening conditions before receiving full NHS approval. Under UK VAT law, some transactions where no money changes hands are treated as if a supply has been made – these are called deemed supplies. This is to keep the system fair. Whether VAT applies to medicines or treatments provided for free under the EAMS will depend on the precise facts of the case. In certain circumstances the giving of goods away for free can be outside the scope of VAT. Where the supply is within the scope of VAT a relief may apply, meaning the supply can be made VAT free.

What assessment her (a) Department and (b) HMRC have conducted on the potential impact on clinical trial numbers from the introduction of VAT to medicines provided free under Early Access Medicines Scheme programmes.

VAT is the UK’s second largest tax, forecast to raise £180 billion in 2025/26. Taxation is a vital source of revenue which helps to fund public services. Early Access to Medicines Scheme (EAMS) allows patients access to free medicines for life threatening conditions before receiving full NHS approval. Under UK VAT law, some transactions where no money changes hands are treated as if a supply has been made – these are called deemed supplies. This is to keep the system fair. Whether VAT applies to medicines or treatments provided for free under the EAMS will depend on the precise facts of the case. In certain circumstances the giving of goods away for free can be outside the scope of VAT. Where the supply is within the scope of VAT a relief may apply, meaning the supply can be made VAT free.

What assessment her Department has made of the potential merits of reforming the (a) Enterprise Investment Scheme and (b) Seed Enterprise Investment Scheme to improve support for firms in the post-start-up phase.

The Government is focused on making the UK the best place in the world to start and grow a business, and understands the key role of a competitive investment environment in achieving economic growth. At Autumn Budget 2024, the Government committed to creating a positive environment for entrepreneurship and business investment. We are working with leading entrepreneurs and venture capital firms on how policy supports that, including the role of the Enterprise Investment Scheme and Seed Enterprise Investment Scheme.

Whether she plans to expand the (a) Enterprise Investment Scheme and (b) Seed Enterprise Investment Scheme scheme to support older companies seeking increased investment.

The Government is focused on making the UK the best place in the world to start and grow a business, and understands the key role of a competitive investment environment in achieving economic growth. At Autumn Budget 2024, the Government committed to creating a positive environment for entrepreneurship and business investment. We are working with leading entrepreneurs and venture capital firms on how policy supports that, including the role of the Enterprise Investment Scheme and Seed Enterprise Investment Scheme.

If she will commission guidance from HM Revenue and Customs clarifying whether medicines supplied under the Early Access Medicines Scheme fall outside the scope of VAT Deemed Supply rules.

Under UK VAT law, some transactions where no money changes hands are treated as if a supply has been made – these are called deemed supplies. This is to keep the system fair if a business has reclaimed VAT on costs (like making or importing goods), it should not avoid accounting for VAT when those goods leave the business for free. Early Access to Medicines Scheme (EAMS) allows patients access to free medicines for life threatening conditions before receiving full NHS approval. Whether VAT applies to medicines or treatments provided for free under the EAMS will depend on the precise facts of the case. Where the supply of free medicine under the EAMS meets the criteria of a deemed supply, VAT will be due.HMRC considers that the guidance around these rules is clear and long-established.

If she will take steps with HM Revenue and Customs to help ensure that a(a) medicines and (b) treatments provided under the Early Access to Medicines Scheme are not subjected to (i) direct or (ii) indirect VAT.

VAT is the UK’s second largest tax, forecast to raise £180 billion in 2025/26. Taxation is a vital source of revenue which helps to fund public services. Early Access to Medicines Scheme (EAMS) allows patients access to free medicines for life threatening conditions before receiving full NHS approval. Under UK VAT law, some transactions where no money changes hands are treated as if a supply has been made – these are called deemed supplies. This is to keep the system fair. If a business has reclaimed VAT on costs (like making or importing goods), it should not avoid accounting VAT when those goods leave the business for free. Whether VAT applies to medicines or treatments provided for free under the EAMS will depend on the precise facts of the case. In certain circumstances the giving of goods away for free can be outside the scope of VAT. Where the supply is within the scope of VAT a relief may apply, meaning the supply can be made VAT free. The Government keeps all taxes under review but there are no plans to change the law for Deemed Supplies.

Whether medicines provided free under Early Access Medicines Scheme programmes are liable for output VAT.

Early Access to Medicines Scheme (EAMS) allows patients access to free medicines for life threatening conditions before receiving full NHS approval. There are special VAT rules for the supply of goods without payment. Whether VAT applies will depend on the precise facts of the case. In certain circumstances the giving of goods away for free can be outside the scope of VAT. Where the supply is within the scope of VAT a relief may apply, meaning the supply can be made VAT free.