08.07.19
NHS Trusts could earn £2.35bn windfall from property tax trial
NHS trusts could be set to receive a £2.35bn tax windfall, depending on the outcome of a High Court property tax trial - the date for which has now been set as 4 November.
The case will see the High Court rule on whether or not to douse a large proportion of the property tax currently paid by NHS hospitals.
It is part of a long-running legal battle between councils and NHS trusts, who say they should be treated the same as charities when it comes to the business rates tax. Currently, charities receive 80% off their bills.
Around one in four of all private hospitals in England and Wales are registered as charities.
The test case that will be heard on 4 November was brought by Derby Teaching Hospitals NHS Foundation Trust and 16 others, against 45 councils.
Analysis of official government data by the real estate adviser Altus Group shows that NHS hospitals in England Wales will pay a total of £408.5m in business rates this financial year for 2019/20.
This year's tax bill is up 42.8%, with NHS trusts paying £122m more compared to the final year before the 2017 revaluation came into effect.
If successful in their case, tax rebates for mandatory relief will be back-dated to 1 April 2010 for NHS Trusts, seeing a windfall of £2.35bn overall, according to Altus Group.