In July 2026, the Court of Appeal found in favour of the appellants in St Patrick's International College & Ors Ltd v HMRC [2026] EWCA Civ 852, overturning the decisions of the First-tier Tribunal and Upper Tribunal.  

The decision of the Court of Appeal would appear to contradict HMRC’s long-standing policy that the provision of educational or vocational training is exempt from VAT only where the provider is an “eligible body”, as defined in the Value Added Tax Act 1994 (Item 1, Group 6, Schedule 9). HMRC has received permission to appeal the Court of Appeal’s decision to the Supreme Court.  

As explained in Revenue & Customs Brief 9 (2026), HMRC recognises that some businesses may want to protect their position, pending the outcome of its appeal to the Supreme Court. HMRC says that it will review claims for a refund of VAT on a “case-by case” basis, taking into consideration:  

• unjust enrichment;
• partial exemption; and
• whether overdeclared VAT has been correctly accounted for across the supply chain. 

The Brief provides guidance for businesses on calculating a claim and warns that the normal statutory requirements and time limits apply.