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HMRC internal manual

VAT Welfare

Which bodies provide exempt welfare services?: what are state-regulated private welfare institutions and agencies?: effective date of state-regulation

HMRC originally took the view that welfare agencies became state-regulated from the time when the regulator was established and able to receive applications for registration. This view was challenged by some agencies.

We now accept that a welfare provider is not state-regulated until its registration has been approved by the relevant national regulator of care. Accordingly, a welfare provider is not state-regulated for the purposes of the VAT exemption, and therefore may not exempt welfare services, during the period of time in which its application to register is being considered.