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

Reference

What has changed in education VAT?

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

Short answer

The biggest recent change is the Court of Appeal's ruling on 6 July 2026 in St Patrick's International College v HMRC, followed by HMRC's Brief 9 (2026) on 2 September 2026 confirming that alternative providers can submit claims while it appeals to the Supreme Court. Newest updates are first.

  1. Supreme Court appeal. We have not seen a hearing date published. Current position.
  2. HMRC publishes Revenue and Customs Brief 9 (2026). Alternative providers who believe they are in the same position as St Patrick's International College can submit claims. HMRC's policy is unchanged and it has permission to appeal. What the brief says.
  3. Capital Goods Scheme changes. Revenue and Customs Brief 7 (2026) confirms the land and buildings threshold rose from £250,000 to £600,000 from 29 July 2026 and computers left the scheme. Relevant to input tax on any claim. Input tax.
  4. Court of Appeal allows the colleges' appeals, [2026] EWCA Civ 852, after a hearing on 16 and 17 June. The case explained.
  5. Upper Tribunal dismisses the appeals, [2025] UKUT 101 (TCC).
  6. VAT on private school fees. Education and boarding supplied by private schools become standard-rated. A separate issue from this site.
  7. EU law and UK VAT. UK VAT legislation can no longer be disapplied for conflicting with EU law, though EU law can still shape how it is read. Relevant to claims for periods from 2024.
  8. First-tier Tribunal dismisses the appeals, [2023] UKFTT 408 (TC).

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Sources

  1. Revenue and Customs Brief 9 (2026): GOV.UK
  2. Revenue and Customs Brief 7 (2026): GOV.UK
  3. St Patrick's International College Ltd & Ors v HMRC [2026] EWCA Civ 852: caselaw.nationalarchives.gov.uk
  4. Revenue and Customs Brief 4 (2024): GOV.UK
  5. VAT Notice 701/30: GOV.UK

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