TC09497 - [2025] UKFTT 00460 (TC)

We heard arguments at some length from Mr Khokhar and Ms Donovan about the correct construction of Note 4 of Group 6. On the one hand Mr Khokhar argued that there were several separate limbs to this Note. He emphasised two elements. The first being the use of the word “include” which meant that the Note was not exhaustive but simply gave examples of items that were included within the meaning of examination services; items not specifically listed might still amount to examination services. The second being that the punctuation of the Note suggested that examination services encompassed separately (a) the setting and marking of exams, (b) the setting of educational or training standards, (c) the making of assessments, (d) other services provided with a view to ensuring educational and training standards are maintained. That construction seemed to be consistent with VAT notice 700/30 where at paragraph 7.1 the separate limbs of Note 4 of group 6 are set out as individual bullet points.

Ms Donovan sought to persuade us that Note 4 should be read as a whole and in context. She argued that the words “the making of assessments” in context sandwiched between “the setting of …. standards” and “ensuring … standards are maintained” meant the words “the making of assessments” should not be treated as a separate item at all but rather was a phrase describing things like setting and judging the standards to which schools teach.

We did not find either Mr Khokar or Ms Donovan’s submissions entirely compelling. We accept that (1) the use of the word “include” means that the list in Note 4 is not exhaustive and could include for example a “test” that led to a formal qualification even if it was described as a test not an exam or assessment; and (2) the punctuation of Note 4 means that the word “assessments” can mean more than assessments provided with a view to ensuring educational and training standards are maintained. However, in our judgment Ms Donovan’s argument that Note 4 had to be read as a whole was correct. We considered that context had to be taken from the words “examination services” and that a service which was in essence a form of teaching/education could not be an examination service by reason of this Note merely because it involved, or indeed consisted of, a considerable number of tests and regardless of whether those tests were correctly called “assessments” or something else.