VAT refund scheme for certain charities


Written by: Alan Pearce

Following announcements made in the last two budgets, HMRC has issued a new notice VAT 1001 explaining the refund scheme for the following qualifying charities:

  • Palliative care charities
  • Air ambulance charities
  • Search and rescue charities
  • Medical courier charities


These charities will be able to claim VAT incurred on their non-business activities under section 33C and 33D of the VAT Act 1994.


The refunds are available whether or not the charity is registered for VAT. Those that are registered will make the claims via their normal VAT returns. Those that are not eligible or choose not to register can still make claims by completing form VAT 126 and submitting this to HMRC. This is the same refund procedure available to unregistered local authorities, academy schools and similar bodies.

Should any charity require further advice on what recoverable VAT costs relate to business and non-business activities, please contact Alan Pearce or your usual Blick Rothenberg contact.