In order to qualify for the scholarship exemption under Section
776 (previously Section 331) the holder of the scholarship has to
be receiving full-time education at a university, college, school
or other educational establishment (see
EIM06205).
An employer's own internal training school or college, or
such an establishment run by an employer's association etc, should
not be regarded as an educational establishment for the purposes of
this guidance. Only recognised universities, technical colleges or
similar educational establishments, open to the public at large and
offering a range of courses both practical and academic, qualify.
You should make enquiries where the nature of the establishment is
not clear.
The education must take place at an educational
establishment. If it takes place elsewhere then the condition is
not satisfied and no exemption is due. An educational establishment
is an establishment whose primary function is that of education.
Where the primary function is other than education the condition is
not satisfied and no exemption is due. This will be the case even
if some education is carried out at the establishment.
As an example, a Ph.D. student may receive education at an
establishment whose primary function is that of research. This is
not an educational establishment and the Section 776 exemption will
not apply. The fact that the students and staff are registered with
a university will not mean the premises are an educational
establishment.
(This text has been withheld because of exemptions in the
Freedom of Information Act 2000)
