Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps he is taking towards establishing a long-term plan around the application of VAT on donated medicines through compassionate access schemes.

The Government has heard concerns from patient groups and industry that the application of VAT to free-of-charge donations have impacted patient access. On 23rd June 2026, the Exchequer Secretary to the Treasury announced that we will bring forward a new approach to address this issue, which will consist either of changes to VAT rules or a reimbursement scheme.

The new approach will be permanent and backdated to 23rd June, giving firms certainty when making donations now.

The Government will set out the details of the new approach at the earliest opportunity.