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We recently addressed the issue of when schools should register for VAT and the topic of business property relief queries.
Published on 19 December, 2024
Author: Markel UK
Markel Tax is a regular contributor to Taxation’s Readers’ Forum. We recently addressed the issue of when schools should register for VAT and the topic of business property relief queries.
Our VAT consultant, Gaynor Dunmall, explained that starting in the new year, private school fees will incur a 20% VAT. According to HMRC's guidance, VAT applies to 2024 payments for 2025 terms. Gaynor goes on to say that VAT liability is based on the effective date of registration (EDR), triggered by exceeding the £90,000 threshold either over 12 months or within 30 days, and only taxable income is considered.
Read the full response here.
Andrew Marston, one of our Tax Advisory Managers, answered the query on business property relief (BPR), noting that BPR is not available for businesses mainly dealing in securities, stocks, shares, land, buildings, or investments. HMRC’s manual indicates that the “wholly or mainly” test is complex, but relief is generally available if over 50% of a company’s tangible assets and profits are from trading activities.
You can read the full piece here.