Taxpayers subsidising private pharmacies?

It looks as though the UK Government is subsiding private healthcare companies by allowing them to claim back VAT. And this is possibly illegal under EU regulations. A VAT loophole has led to the absurdity of NHS hospitals closing down their own pharmacies and the private sector opening new pharmacies in their place1.  This is happening because the private sector can claim back VAT paid on drugs, yet a NHS pharmacy cannot!! The NHS is exempt from VAT so it can neither charge VAT nor claim it back. However, private healthcare companies are registered for VAT and when dispensing prescription…