Navigating VAT in the care sector

Welcome to our latest healthcare, digital health and life sciences bulletin, which addresses key legal and regulatory issues and evolving areas of law affecting healthcare, digital health and/or life sciences businesses. This quarter we:

  • Outline the VAT landscape in the care sector, detailing the HMRC's current enforcement activity.
  • Summarise some of the headline proposals in the Immigration White Paper.
  • Explore the opportunities for healthcare providers to increase energy efficiency and reduce volatility in energy costs.
  • Highlight the objectives of the Care Quality Commision's dementia strategy.
  • Investigate how the Mental Health Bill 2025 might impact healthcare providers.

Our team recently welcomed banking and finance partner Deborah Rowntree, specialising in real estate finance with a sector focus on healthcare. Read below to find out more about her expertise.

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HMRC scrutinises VAT grouping structures in the care sector: what do care providers need to know?

HMRC has recently intensified its focus on specific VAT arrangements within the care sector. In this article we outline the VAT landscape in the care sector, detailing the HMRC's current enforcement activity and its enforcement approach. We also advise next steps for healthcare providers in regards to risk management strategies.

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HMRC Building

Immigration White Paper – what does this mean for employers?

On 12 May 2025, the prime minister announced a number of proposed changes to the UK’s immigration system, designed to cut levels of immigration into the UK. These measures were announced in a White Paper, which is subject to further consultation and discussion. In our article, we've summarised some of the headline proposals, along with the potential implications for UK employers.

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Care Quality Commision's dementia strategy: what are the objectives?

With NHS England estimating that around 850,000 people in the UK have dementia and the economic cost associated with the disease thought to amount to £23 billion a year, dementia is one of the most important health and social care issues facing the UK. In October 2024, the Care Quality Commission announced that they would be developing a cross-sector dementia strategy. Our article highlights the strategy objectives and what health and social care providers can expect to see in the future.

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How can healthcare businesses finance energy efficiency?

Over recent years energy has become a key focus for businesses in the healthcare sector: energy costs are a significant and, especially over recent years, volatile item of operating expenditure. Healthcare businesses are also obliged to reduce carbon emissions towards net zero in 2050. This article examines the opportunities that exist to simultaneously decarbonise, de-risk operating expenditure, and ultimately increase profitability of healthcare businesses. 

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How might the Mental Health Bill 2025 impact healthcare providers?

The Mental Health Bill 2025 was introduced in the House of Lords on 6 November 2024 with the primary purpose being to amend the Mental Health Act 1983. It was introduced to the House of Commons on 24 April 2025 and is currently at committee stage. Once the bill has received approval from both Houses of Parliament, it will go through Royal Assent to become an Act of Parliament. In this article, we outline what the bill is aiming to achieve and how it might impact healthcare providers.

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Listen to the latest episode in our AI podcast series

Regulation and other challenges of exploiting AI in healthcare: what needs to shift?

Partner and healthcare and life sciences sector head Jocelyn Ormond interviews Dr Michelle Tempest on how AI is transforming the sector, why AI is integral for innovation in this space and the regulatory challenges that need to be overcome.

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Ashfords welcomes Deborah Rowntree to strengthen real estate finance and healthcare offering

Ashfords has appointed Deborah Rowntree as a partner in its London banking and finance team, specialising in real estate finance with a sector focus on healthcare. Deborah has extensive experience acting for lenders, real estate investors, operators, and developers on a variety of funding transactions. She regularly advises on acquisition finance, development funding, real estate investment, restructurings, general corporate financings, complex syndicated lending and re-financings.

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