VAT focus: University of Cambridge and VAT on investment management services

The Upper Tribunal handed down its judgment in HMRC v University of Cambridge [2015] UKUT 305 on 9 June 2015 (reported in Tax Journal on 23 June 2015) in which it dismissed HMRC’s appeal and concurred with the First-tier Tribunal’s (FTT’s) decision that the University of Cambridge (the university) was entitled to recover input VAT incurred on investment management services for its endowment fund. This decision may be of assistance to partially exempt institutions holding investments that generate income which is used for the benefit of their activities as a whole.

 

The university makes two types of supplies: exempt supplies of education; and...