The Court of Appeal ruled for private colleges on 6 July 2026. HMRC has permission to appeal to the Supreme Court. Latest position

Education Exemption - College VAT Reclaims

The ruling

Is HMRC appealing the St Patrick's decision to the Supreme Court?

Last reviewed 28 September 2026. Checked against HMRC guidance, legislation and the judgments linked under Sources. General information, not tax advice.

Short answer

Yes. HMRC's Brief 9 (2026), published on 2 September 2026, says HMRC has received permission to appeal the Court of Appeal's decision to the Supreme Court. As at 28 September 2026 we have not seen a hearing date published. Until the Supreme Court decides, the Court of Appeal's ruling stands, but HMRC says it will protect its position.

Where things stand

StageStatusDate
Court of Appeal judgmentAppeals allowed, [2026] EWCA Civ 8526 July 2026
Permission to appealGranted to HMRC, as confirmed in Brief 9 (2026)Confirmed 2 September 2026
Supreme Court hearingNo date seenChecked 28 September 2026
Supreme Court judgmentAwaited-

What HMRC is likely to argue

In the Court of Appeal HMRC argued that fiscal neutrality does not require equal treatment of every supply that is interchangeable from the consumer's point of view where the law also sets a condition about who the supplier is. The Court of Appeal could not accept that because it was bound by its own earlier decision in LIFE [2020] EWCA Civ 452. The Supreme Court is not bound by that decision, so it can look at the question afresh. Lord Justice Miles said he saw considerable force in HMRC's position.

What each outcome would mean

  • If the Supreme Court agrees with the Court of Appeal, providers in the same position as the colleges have a firm basis for their claims. HMRC would still look at unjust enrichment, input tax and the detail of each claim.
  • If the Supreme Court agrees with HMRC, providers would be back to standard-rating, claims would be expected to fail, and HMRC could try to recover money it had already repaid.

Why waiting can still cost you

The four-year limit for claims keeps running while the appeal is pending. Every month that passes takes the oldest month out of reach for good. A claim made now protects periods that would otherwise drop out, whatever the Supreme Court eventually decides. Whether that is worth doing depends on the size of the claim, the risk you are comfortable with and how HMRC deals with claims in the meantime.

Updates

  1. No Supreme Court hearing date seen.
  2. HMRC publishes Brief 9 (2026) and confirms it has permission to appeal.
  3. Court of Appeal allows the colleges' appeals.

Older history is on the updates page.

Get an email when the Supreme Court acts

One short email when there is news on the appeal or a change in HMRC guidance. Nothing else.

Sources

  1. Revenue and Customs Brief 9 (2026): GOV.UK
  2. St Patrick's International College Ltd & Ors v HMRC [2026] EWCA Civ 852: caselaw.nationalarchives.gov.uk
  3. HMRC skeleton argument in the Court of Appeal: judiciary.uk
  4. Supreme Court current cases: supremecourt.uk/cases

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