The Court of Appeal has referred matters raised in The Chancellor, Masters and Scholars of the University of Cambridge case to the Court of Justice of the European Union (CJEU) for guidance. Although it is anticipated that it may be some time before this case is heard, it is hoped that the referral will finally provide certainty.

The university’s appeal against the decision of HMRC to refuse its input tax claim was first heard by the First Tier Tribunal (FTT) in August 2013. The issue before the tribunals has been whether VAT incurred by the university on fund management fees is partly recoverable. The university is partly exempt, making VAT-exempt supplies of education, and taxable supplies of commercial research, publications, consultancy services, catering, accommodation and the hiring of facilities and equipment. The university has won its case before both the FTT and the Upper Tribunal (UT). The UT case was heard in March 2015.