New version for higher education VAT framework

HMRC has agreed a new version of the Framework for Higher Education Institutions Partial Exemption special methods with both the British Universities Finance Directors’ Group and the Higher Education Funding Council for England. The framework covers VAT partial exemption methods for higher education institutions particularly on: determining a fair ‘value’ for supplies of grant-supported education, when to add ‘sectors’ to a partial exemption method and identifying and dealing with ‘distorting supplies’. HMRC states the framework ‘is not mandatory and does not replace the content of VAT Notice 706 (Partial Exemption), but adopting its principles will enable HMRC more readily to give approval for a partial exemption special method for which a statutory declaration has been made.’