Changes for higher education providers

The government has confirmed an amendment to the legislation to ensure continuity of the VAT treatment for English higher education providers. An update is required as a result of changes being made to the way providers will be funded by the Office for Students (OfS) from the start of the 2019-20 academic year.

The change in legislation removes the VAT exemption for English higher education providers that are currently designated as eligible to receive support from central funding or are higher education corporations (VATA 1994 Sch 9 group 6 note 1(c)). It will apply to providers who are registered with the OfS in the approved (fee cap) category from 1 August.

However such bodies may still qualify for eligible body status if or to the extent that they are covered by the other notes to group 6. For example note 1(e) will continue to treat all...