The HMRC brief confirms that providers must be charities, public bodies or regulated by the relevant authority in the country concerned, in order to be able to exempt their supply of services.

The brief was published following the judgment of the Court of Appeal in the joint appeals of LIFE Services Ltd (LIFE) and The Learning Centre (Romford) Ltd (TLC) and the Supreme Court’s decision to refuse leave to the appeal on 15 January 2021.

HMRC originally maintained that the services were subject to VAT at the standard rate, whereas LIFE and TLC contended that they were exempt. The First Tier Tribunal (FTT) allowed both appeals.