VAT briefing for February 2016

 

In HMRC v Wakefield College [2016] UKUT 19 (reported in Tax Journal 28 January 2016) the Upper Tribunal (UT) gave guidance on the meaning of ‘in the course or furtherance of a business’ for VAT purposes. Wakefield College was a charity that provided further education courses which were partially funded by the students and partially grant funded by the Learning and Skills Council (LSC). Where students were required to contribute to the cost of the course their fees were determined on a course by course basis by the operation of a formula agreed with the LSC. Construction works were undertaken on one of the college buildings and the question before the UT was whether such works could be zero-rated for...