EU Court Denies Cambridge University Investment Fee Write-Off

Europe’s top court has denied the U.K.'s University of Cambridge the right to write off investment fees against value-added tax expenses.

In a July 3 decision, the European Court of Justice said VAT law within the European Union doesn’t permit deductions that involve both “taxable and exempt activities,” marking a victory for the U.K. tax office but a blow for nonprofit education institutions and some charity groups.

The dispute centered on a 2009 claim, made by KPMG LLP on behalf of the university, for a VAT repayment of approximately 182,501 pounds ($228,000) for investment fees for the professional management ...