The Access to Medicines and Medical Devices APPG is pleased to announce a significant step forward following the APPG’s engagement with Government on the application of VAT to medicines provided free of charge through Early Access Programmes (EAPs).

Following a letter shared by our APPG Chair Danny Beales MP, supported by several patient organisations, and an oral question raised in Parliament on Tuesday 23 June, the Government has confirmed that it will take forward a new approach to VAT on free-of-charge medicine donations.

Responding to the oral question, Exchequer Secretary to the Treasury Dan Tomlinson MP confirmed:

"The Government will take forward a new approach on VAT on free-of-charge donations of medicines, consisting of either changes to the VAT rules or a reimbursement scheme. The Government understands that any additional VAT burden on medicines provided free-of-charge has the potential to impact patient outcomes."

The Government confirmed that these changes will apply to donations made on or after 23 June 2026 and that it will engage with stakeholders to consider the available options and determine the most effective approach.

The APPG would like to extend its sincere thanks to all stakeholders who have contributed throughout this process by sharing their expertise, evidence and experiences. We are also grateful to our Chair, Danny Beales MP, for his leadership and dedication in championing this important issue and advocating for improved access to medicines, alongside our Officers and parliamentary members for their continued support and engagement.

This announcement represents an important step towards addressing financial barriers that can prevent new and innovative treatments from reaching patients. Voluntary medicine donation programmes have an important role to play in enabling timely access to medicines for patients with unmet needs, and we welcome the Government’s commitment to exploring this approach.

We look forward to further updates as the new framework is developed and implemented.