SAE Education Limited v HMRC – the university education exemption

05 Mar 2014

The First-tier Tribunal (Tax) has allowed the appeal of SAE Education Ltd against the decision of HMRC that it was not a “college of a university” within the meaning of exemption provided for in Note 1(b), Group 6 of Schedule 9 VATA.

In concluding that SAE is a college of Middlesex University, the Tribunal found that SAE has a similar purpose to the University in the provision of university education to students.  The Tribunal found that in providing both degree and diploma courses, SAE provides university-standard education.

The decision bucks the trend of the recent case-law on the Note 1(b) exemption, and firmly grounds the analysis of the exemption in the relevant EU law context.

Melanie Hall QC and Elizabeth Kelsey appeared for the Appellant, SAE Education Ltd

Click here to read our case note on SAE Education Ltd v HMRC