Summary
The appellant was a further education college providing courses of a ‘vocational’ nature funded primarily by the Skills Funding Agency (SFA), and the Education Funding Agency (EFA). HM Revenue and Customs (HMRC) considered these to be non-business and following the CJEU's judgment inâ¯Lennartzâ¯C-97/90. HMRC's understanding of the position was that the appellant was entitled to reclaim the input tax incurred on the construction of Blocks 1 and 6 on its campus, in the percentage that its use related to these non-business activities. However, the appellant would subsequently be due to account for deemed output tax over the economic life of the blocks to the extent that their use was for 'non-business' purposes.
Background
In April 2014, the appellant's VAT advisor submitted a net claim in respect of over-declared output VAT for periods 04/10 to 01/14 minus
