Education - Exemption Flashcards
What is the significance of the case Marcus Webb Golf Professional?
HMRC accepted that golf tuition is education but the exemption only applies when you act in a personal capacity
What is the significance of the case of Audrey Cheruvier (T/A Fleur Estelle Belly Dance School) [2023]?
Audrey appealed against HMRC’s decision that her supplies of belly dance tuition were taxable.
She taught one form of dancing and taught to a syllabus of her own without reference to an external standard or assessment (since non existed).
She was not able to demonstrate that the form of dancing was a component part of dance course taught at a school or university, other than in a very general sense.
The supplies were taxable. Later cases have confirmed that yoga, kickboxing and Pilates are not subjects ordinarily taught in schools
What is the significance of the case of the Anna Cook [2021] case?
The upper tribunal overturned the FTT decision and Ceroc dance, which was advertised as a fun night out and a way of meeting members of the opposite sex, with a licenced bar and DJs, was held to be taxable.
What is the significance of Farhschul-Akademie Gmbh [2019]?
The VAT education exemption does not apply to driving tuition.
Separate cases have shown HMRC treats swimming lessons as exempt, even though EU case law doesn’t. Dog grooming, even though taught at further education schools, is taxable.
What is the significance of Pilgrims Language Courses and The College of Estate Management?
Considered whether there was one supply of exempt education or separate supplies subject to different liabilities.
Supplies of catering, accommodation, excursions and printed matter were ancillary to the supply of education and exempt for a supply of Teaching English as a Foreign Language.
What is the significance of SAE Education Ltd?
Concerned whether a separate trading company that provided courses in association with Middlesex University could be treated as an eligible body for the purposes of the education exemption.
The Supreme Court held that the activities of SAE were integrated into those of the university and that it shared the same objectives as the university. As a result, it was a college of the university and could exempt its supplies of education.
What is the significance of Fareham College [2023]?
Considered supplies which are closely related to education and eligible for exemption
The taxpayer was a further and higher education college offering courses such as catering, hair and beauty and performing arts.
Students worked in a training restaurant, training hair and beauty salons and a performing arts centre operated by the taxpayer and gained practical work experience as part of their courses.
The taxpayer claimed a refund of overpaid output tax believing the ancillary supplies should be exempt. HMRC blocked this. The tribunal held the restaurant services could be exempt if it was not for the purposes of obtaining income, but not the salon or performing arts centre.
