Socrates Socratous, VAT Partner, has contributed expert commentary to Civil Society Media following HMRC’s decision not to appeal the Court of Appeal decision in the Colchester Institute VAT case.

In the article, Socrates highlights the significance of HMRC confirming it will not pursue a Supreme Court appeal, bringing greater clarity to a long-running dispute on the VAT treatment of public funding for further education institutions.

His comments focus on the wider implications of the case, particularly for organisations in the charities and education sectors that receive grant or public funding. The decision reinforces the importance of understanding whether funding may be treated as consideration for a supply, rather than non-business income, a distinction that can have a direct impact on VAT recovery and access to reliefs.

Socrates also notes that, while the legal position is now established, uncertainty remains as HMRC continues to review the judgment and consult with stakeholders before issuing updated guidance.

Socrates’ comments appear in Civil Society’s recent coverage on 1 June of the Colchester Institute decision.

Click the here to read the full article.