The Autumn statement means that charitable hospices across the UK will receive a rebate of over £4 million to cover VAT costs.
For many years hospices have paid VAT on many of their supplies, unlike similar services run by the NHS , but from April, they will be able to claim a refund.
Announcing his final statement before the general election, Chancellor George Osborne said: “Our hospice charities also make an enormous contribution to our communities.
“They have long been subject to unfair rules that force them to pay VAT, when the NHS does not.
“I am today refunding the VAT that these hospice charities incur.”
Harlington Hospice, based at Lansdowne House in St Peters Way, Harlington, provides services for people at the end of their lives and supports families suffering from bereavement and loss.
Its Hospice at Home service provides nursing care for up to 150 families each year and a specialised Lymphoedema therapy service, helps well over 100 people each year to manage their condition.
It also runs the Reg Hopkins Centre, which opened in 2012, and enables the charity to provide services to patients and their families at the day centre.
Steve Curry, Harlington Hospice chief officer, said: “We are very pleased with the announcement of George Osborne’s planned tax break for Hospices.
“Harlington Hospice as a small charity face a heavy burden with the amount of VAT we currently pay.
“This would make a tremendous difference to the hospice, all the money saved would be invested back into the services we provide enabling us to reach more patients and their carers within the local community.”
Michael Sobell Hospice (MSH) based at Mount Vernon Hospital in Rickmansworth Road, Northwood , has a 16 bed in-patient unit as well as a day therapy centre.
It is the chosen charity of the Mayor of Hillingdon , Catherine Dann, during her year of office.
The charity has to raise £1.5million every year to ensure that vital services are maintained, but it is not directly affected by the tax break.
Helen Elliott, chief executive at Michael Sobell Hospice , said: "Here at MSH our situation is slightly different in that we are an NHS hospice supported by an independent charity.
"This means that we have not had to pay VAT on many of our supplies. We are happy that the Chancellor has acted to close the VAT gap faced by charitable hospices as all hospice charities make an enormous contribution to local communities.
"We applaud the campaign led by Hospice UK to ensure this rebate has been implemented."
