A catering college in Hampshire has won a £55,000 tax rebate after winning a claim that food served at its in-house restaurant should be exempt from VAT.
The victory for Brockenhurst Collge follows a long battle with HMRC over MJ's restaurant, which is run by catering students and serves heavily discounted food and does not make a profit.
The college has now reclaimed almost four years' worth of VAT it had wrongly paid on meals at MJ's, according to the Southern Daily Echo.
MJ's offers locals meals for as little as £15 for three courses, with the aim being to provide students with practical experience.
HMRC lawyers argued that becuse diners benefitted from the service, VAT should be charged. But a judge ruled that the restaurant aimed to meet the educational needs of students and was therefore exempt.