TC09614 - [2025] UKFTT 01015 (TC)

As noted above, the issue between the parties concerns the Consideration Point. It is common ground that if I am against HMRC on this issue, the output tax assessed on the College was not due and, other than the appeal under reference TC/2021/00091 insofar as it relates to the assessment for its 04/16 VAT accounting period, the College’s appeal must succeed.

With regard to the assessment for 04/16, as it was withdrawn by HMRC on 4 June 2025 the Tribunal ceased to have jurisdiction from that date (see Align Technology Switzerland GmbH and another v HMRC [2024] UKFTT 01100 (TC) at [52], citing LS v HMRC and RS v HMRC [2017] UKUT 257 (AAC) at [25]). Accordingly, in the absence of jurisdiction the Tribunal must strike out that part of the appeal that relates to the 04/16 assessment (see Rule 8(2)(a) Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009).

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 this 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, the appeal the appeals are allowed in part.

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.