- The case involves the Commissioners for His Majesty’s Revenue and Customs (HMRC) appealing against Colchester Institute Corporation (CIC)
- The appeal concerns whether government-funded grants received by CIC for providing free educational and vocational training to students constitute a supply of services for consideration
- The First-tier Tribunal (Tax Chamber) previously ruled in favor of CIC, aligning with an earlier Upper Tribunal decision from 2020 which found similar circumstances to constitute supplies for consideration
- HMRC appealed the First-tier Tribunal’s decision but chose not to argue against the binding precedent set by the 2020 Upper Tribunal decision
- HMRC acknowledged that this acceptance meant their current appeal should be dismissed but reserved the right to revisit the issue in a higher court
- The Upper Tribunal dismissed HMRC’s appeal based on the precedent and judicial comity, which respects earlier decisions of co-ordinate jurisdiction unless proven incorrect
- The decision reaffirms that the provision of free education by CIC under government-funded grants is considered a supply of services for consideration under VAT regulations
Source: bailii.org
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
