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Education

Education provided by a local authority to school pupils is non-business, meaning that all related VAT can be recovered. HMRC's policy, as set out in their manual VATGPB7815, is to allow sales to pupils that are closely related to their education to be treated as non-business provided certain conditions are met. The term 'closely related' draws on the wording of the education exemption in VATA 1994, Sch 9, Group 5 which does not have direct relevance for non-business supplies. Nonetheless, in broad terms, HMRC see 'closely related' goods and services as being those that are:

1. Ìý

   •ÌýÌýÌýÌý for the direct use of the pupil, student or trainee, and

2. Ìý

   •ÌýÌýÌýÌý necessary for delivering the education to that person

Education provided by a local authority by way of business (eg the provision of adult education – see below) is generally exempt from VAT. This is because a local authority is an 'eligible body' for training purposes as set out in VAT Notice 701/30, para 4. This means that input VAT