24 June 2014 
Dominic Fryer, Managing Director
HMRC have announced this week that they are withdrawing 13 extra statutory concessions – 2 of which relate to the zero rating of student accommodation. The first covers out of term time use of student residences – which under the concession could be ignored. From April 2015, HEIs must rely only on the legislation, and so student use of the accommodation should now make up 95% of all use (the “Solely” test).The other concession relates to the zero rating of dining halls – which will have less impact but still requires attention.
Whilst the post concessionary regime is clearly less favourable than before, we have been anticipating the withdrawal for some time which is a consequence of the Wilkinson case which was decided some 8 years ago. HMRC have worked to mitigate the adverse impact on HEIs by:
Martin Scammell has prepared a VAT and Property Newsletter which gives some more detail on the changes. You can also find out more from VAT Information Sheet 02/14 and RCB 03/14 and 04/14.
BUFDG are very grateful to Martin Scammell, Steve Carter, Kerry Sykes, Harriet Latham, and George Reid (from the Office for Inter-collegiate Services in Cambridge) for their help and commitment in working collaboratively with HMRC on this matter.
