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Health officials close PFI loophole

Officials at the Department of Health have closed a tax loophole to save millions of pounds on PFI hospitals.

A new scheme will allow more generous allowances but contractors will have to pass the benefits on directly to NHS Trusts.

Contractors had hoped to use the scheme as a way of boosting profits and their tax deductions.

If it succeeds the new rules will be passed to education and defence deals.

Published: Fri, 14 Feb 2003 01:00:00 GMT+00

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