The Chancellor announced in today’s Autumn Statement that as part of the government’s one-off restructuring of post-16 education and training, sixth form colleges in England will be given the opportunity to become academies, allowing them to recover their non-business VAT costs. Academies were given a special VAT status in 2011 to enable them to recover VAT. This measure will enable sixth form colleges to achieve the same status.

The announcement confirms that sixth form colleges will have the option of joining a Multi Academy Trust if they choose to do so. This development will create significant VAT savings for those directly impacted.