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HMRC appeal against Brockenhurst College ruling set for February
HMRC say they have not changed their view on the VAT liability of catering and other services linked to education.
Revenue and Customs Brief 39 (2014) sets out the department’s position after the Court of Appeal granted leave to appeal against the Upper Tribunal’s decision in CRC v Brockenhurst College [2014] STC 1332.
The case concerned the VAT liability of restaurant meals, concerts and other performances provide by students for the public as part of further education courses.
The Upper Tribunal held that supplies were closely related to the exempt supplies of education because they enabled students to enjoy better education. The requirement in domestic law for the supplies to be of direct use to the student was met because they were of direct benefit to him/her.
The Revenue is due to be heard in the Court of Appeal on 16 and 17 February.
The department’s policy in the interim remains unchanged: such supplies are outside the scope of the educational exemption because they are enjoyed by third parties not in receipt of education remains unchanged.
The approach will be reviewed after the Court of Appeal releases its judgment next year.
Tax officials will consider claims and make appropriate repayments based on the Upper Tribunal’s decision where the circumstances are exactly the same as those in Brockenhurst College. Repayments will be subject to protective assessments in case the Court of Appeal reverses the tribunal’s decision.
