TC09616 - [2025] UKFTT 01017 (TC)

As noted above, the issue between the parties concerns the Consideration Point. It is common ground that if HMRC are unsuccessful on this issue the output tax assessed on CIC was not due 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 follows that the College must succeed on the Consideration Point. However, given that CIC no longer pursues its appeal against the input tax element of the assessments and it is agreed that these are not in issue, its appeal cannot succeed in its entirety.

Therefore, for the reasons above, the appeal is 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.