TC09608 - [2025] UKFTT 00968 (TC)

It is common ground that these appeals turn on an issue that arises from the agreed facts described as the “Consideration Point”. This is whether, for VAT purposes, grants received by the College, a further education college, from the SFA and EFA are “consideration” (within the meaning of s 5(6)(a) VATA and Article 2(1) of the PVD) for a supply of services (education and/or vocational training) provided free of charge by the College to students.

If the Consideration point is decided against HMRC it is agreed that the output tax assessed was not due from the College and its appeal must succeed.

Although HMRC reserves its arguments on the Consideration Point, a matter due to be heard by the Court of Appeal in June 2026, the parties agree that the Consideration Point was determined against HMRC by the Upper Tribunal in Colchester Institute Corporation v HMRC [2020] UKUT 368 (TCC) at [65] – [89]. As I am bound by the decision of the Upper Tribunal, it therefore follows that the College must succeed on the Consideration Point.

Accordingly its appeal is allowed.

This document contains full findings of fact and reasons for the decision. Any party dissatisfied with this decision has a right to apply for permission to appeal against it pursuant to Rule 39 of the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009. The application must be received by this Tribunal not later than 56 days after this decision is sent to that party. The parties are referred to “Guidance to accompany a Decision from the First-tier Tribunal (Tax Chamber)” which accompanies and forms part of this decision notice.