{
  "url": "https://openlegislation.uk/branded-health-service-medicines-costs-amendment-no-2-regulations-2023/note",
  "json_url": "https://openlegislation.uk/branded-health-service-medicines-costs-amendment-no-2-regulations-2023/note.json",
  "legislation": "uksi/2023/1307",
  "legislation_title": "The Branded Health Service Medicines (Costs) (Amendment) (No. 2) Regulations 2023",
  "legislation_url": "https://openlegislation.uk/branded-health-service-medicines-costs-amendment-no-2-regulations-2023",
  "path": "note",
  "kind": "note",
  "number": null,
  "heading": "Explanatory note",
  "text": "(This note is not part of the Regulations)\nThese Regulations amend the Branded Health Service Medicines (Costs) Regulations 2018 (S.I. 2018/345) (the “Statutory Scheme Regulations”). The Statutory Scheme Regulations, amongst other matters, make a scheme for the purpose of requiring specific manufacturers and suppliers of branded medicines for health service use to pay certain amounts to the Secretary of State. These amounts are calculated by reference to the net sales income or estimated net sales income from supplies of such medicines.\nRegulation 2(2)(a)(ii) makes provision to replace the payment percentages in the table in regulation 3(1) of the Statutory Scheme Regulations with new payment percentages of net sales income payable by manufacturers and suppliers subject to the Statutory Scheme Regulations from the 1st January 2024 for each applicable period. The payment percentage that will apply during 2024 is 21.9%; during 2025 is 24.0% and during 2026 and each subsequent year is 26.8%. The payment percentage figure is used to calculate the amount payable to the Secretary of State on net sales income for supplies of relevant medicines made during the applicable period to which the applicable payment percentage applies.\nRegulation 2(2)(a)(i) and (b) and (3) makes amendments to the Statutory Scheme Regulations to remove transitory provisions that are no longer relevant as a consequence of the amendment made by regulation 2(2)(a)(ii).\nRegulation 2(2)(c) and (d) makes provision to introduce exemptions from payments in respect of the net sales income on supplies of branded medicines that are new active substance presentations, line extensions of new active substance presentations, exceptional centrally procured presentations and centrally procured vaccine presentations in regulation 3(4) and new paragraphs (5D) to (5H) of the Statutory Scheme Regulations. The effect of these amendments is that manufacturers and suppliers who supply such branded medicines will not be liable to make the payments required by regulation 3(1) of the Statutory Scheme Regulations on the net sales income of such supplies from 1st January 2024.\nAn impact assessment relating to this instrument has been prepared and copies can be obtained from the Department of Health and Social Care, 39 Victoria Street, London, SW1H 0EU and is available on the www.legislation.gov.uk website.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2023/1307/note",
    "retrieved_at": "2026-10-28T21:37:42.755683+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}