Do you own a private school or college?
If yes, you’re not just imparting knowledge – you’re also operating a business. And this means potential tax benefits that you might not be fully utilising.
How can I benefit?
Consider a case where a commercial education company rebuilt an infant school – yours may be something similar!
- Their facilities:
- Student accommodation
- Classrooms, sports facilities, and changing rooms
- Multipurpose assembly hall
- Dining and kitchen facilities
- On-site staff accommodation
- Comprehensive security system
This education company pays tax on the term fees it charges. But did you know that such institutions can claim Capital Allowances tax relief on items within their property used for their educational trade?
What the company initially missed:
- They recognised: Classroom furniture, kitchen equipment, security equipment and sports equipment.
- They overlooked: Essential installations like the heating, electrical systems, and welfare facilities, as well as site security and student/staff accommodation facilities.
In their case:
- The Initial Claim: 11% of total expenditure.
- After Review: A whopping 58% was found eligible for tax relief.
Is there tax relief available?
Absolutely! Here are some of the ways how:
- Any tax paying education company – from infant schools to colleges – can claim Capital Allowances.
- What can be claimed will differ based on student age – due to varying trade requirements – but eligible items exist at every educational level.
Ensure you’re claiming all that’s available for your institution. If you’re unsure about what can be claimed, it’s always a good idea to seek a professional’s guidance. Contact us for a chat to find out the tax relief you’re entitled to.
Get the tax relief you are entitled to
If you need the help of a tax consultant to identify what tax relief you are eligible for on your commercial property, contact us today to have a no obligation chat.