Some of our clients have asked us recently about the VAT treatment of land & property sales, e.g. disposal of surplus hospital sites. Transactions involving land and property are often complex and the VAT liabilities can vary. Generally, the supply of land and property is exempt from VAT unless specifically excluded from exemption. Such supplies may therefore be standard-rated or zero-rated depending upon the circumstances.

When disposing of land and property or granting other interests (e.g. leases, rents, licences, etc), the NHS must apply the correct VAT liabilities in the same way as everyone else. Professional advice should be sought in each particular case and we would therefore be happy to help in these circumstances.