§ Mr. Wallace
To ask the Chancellor of the Exchequer what discussions have taken place between HM customs and representatives of the British Medical Association on the VAT liability of dispensing by doctors; and if he will make a statement.
§ Mr. Heathcoat-Amory
Officials of Customs and Excise met representatives of the British Medical Association on 3 May 1994 to discuss the VAT liability of dispensing by doctors who are authorised or required to provide NHS pharmacy services. Provisional arrangements whereby doctors can continue to treat this dispensing as a non-business NHS activity have been agreed, pending the outcome of customs' further consultations with the BMA and others.