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Saturday, 13th March 2010

Bethesda VAT issue at Numer 10

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Published Date: 05 May 2008
WESTERN Isles MP Angus MacNeil will be among a group of Cross Party MPs who will be meeting the Prime Minister Gordon Brown this week regarding VAT on hospices.
Stornoway's Bethesda Nursing Home and Hospice raises its income through fundraising. This issue is of particular significance for to the home as they will be paying almost £300,000 in VAT due to the cost associated with their extension.

Mr MacNe
il said: "This issue has huge financial costs on hospices who need to extend to meet government criteria throughout the UK. It seems particularly unfair on hospices who have to collect from the public to do work that helps the state and society in general care for the old, vulnerable and sometimes terminally ill.

"For Bethesda in Stornoway nearly to pay nearly 300k when they are only building in line with new demands by the state to fulfil a society need feels particularly unfair. A lot of people I know are contributing some money to Bethesda during the year which is necessary for them to carry out some aspects of their work. For such a charity doing this sort of good work to be taxed by the government through VAT seems very unfair and a diversion of funds.

"I hope that PM Gordon Brown will be reasonable and see that this is an important issue particularly with a group of MPs from across the parties coming to see him. I have been well briefed by DR MacDonald of Bethesda and will be putting their case for them."





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  • Last Updated: 05 May 2008 11:40 AM
  • Source: n/a
  • Location: Stornoway
 
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Edward,

Islde of Lewis 08/05/2008 15:59:15
Hmm,
I hadn't realised that the extension was to be *solely* used by the palliative care beds and not the nursing home element of Bethesda.
Even if the rules were changed, legislation doesn't apply retrospectively and it wouldn't apply to the element of the cost relating to the nursing home.

Interesting comment by Macneil "It seems particularly unfair on hospices who have to collect from the public to do work that helps the state and society in general care for the old, vulnerable and sometimes terminally ill." I thought hospices *always* dealt with the terminally ill? Perhaps he needs briefing?
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