School Fees and Gift Aid

I am thinking of sending my youngest son to a private school. The school fees are going to be in the region of £12,000 per annum and on the correspondence I have recently received I noticed the school states that it is a registered charity. Does this mean that the payments I make for the fees each year qualify for tax relief under gift aid?

1st June 2008

The school has become a registered charity so it can reclaim basic rate tax on the donations it receives on qualifying gift aid payments made from United Kingdomresident individuals and companies.

Unfortunately, outright payments to a charity in return for services, rights or goods are not gifts, and do not qualify for gift aid.

HM Revenue & Customs specifically state in their gift aid guidance booklet that “Payment of school fees for a specific person do not fall within the gift aid scheme” so your £12,000 will not qualify for relief.

By Jo Nockels

Disclaimer: Advice shared in this blog is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this forum, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

Call us today to make an appointment at your local office

0800 0523 555

Or submit an enquiry