- The Court of Appeal ruled that public funding received by further education institutions is third-party consideration for supplying education, not a grant outside VAT scope.
- HMRC will not appeal the ruling and will consult stakeholders before announcing any policy changes.
- Institutions that have not adopted the third-party consideration position will only see VAT changes applied prospectively from a future date.
- Institutions that have adopted the third-party consideration position must continue to do so and comply with relevant VAT obligations.
- No action is required regarding private school fees legislation unless institutions are within its scope.
Source: gov.uk
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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