Derby College Group Wins VAT Appeal: Grants Not Consideration for Free Education Services

• Derby College Group won its VAT appeal regarding the meaning of consideration.
• The case involved whether government funding agency grants are considered consideration for services provided free to students.
• The appeal was allowed based on a previous decision in Colchester Institute Corporation v HMRC.
• The decision was against HMRC, meaning the assessed output tax was not due from the College.
• The matter is set to be heard by the Court of Appeal in June 2026, but the current decision stands.

Source: claritaxnews.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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