Universities hope for VAT refund scheme after Brexit

The UK's departure from the European Union could offer an opportunity for universities to receive refunds on VAT paid when constructing research buildings for shared use with industry, the British Universities Finance Directors Group (BUFDG) has said.

As it stands, universities are exempted from paying VAT when they construct a research building that is only occupied and used by university staff. However, institutions must pay VAT when constructing research buildings that are jointly used by industry.

Universities have long argued that this arrangement is stifling public-private research collaboration. They have tried to work around the rules by conducting research in older, out of date buildings, or placing restrictions on how researchers can operate within certain buildings.