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School building

12 August 2014
Issue: 4464 / Categories: Forum & Feedback , VAT

Minimising VAT on the purchase of a mobile building for educational purposes

A charitable company runs a nursery school which operates in the grounds of an academy school. Both these businesses are clients of mine. The current premises are rented by the school to the nursery.

It is intended that the nursery will soon be subsumed by the academy initially to act as a subsidiary of the school.

The nursery wishes to buy a mobile building at a cost of £60 000 including VAT of £10 000. The nursery is not VAT registered but I have been asked whether there is any way in which the VAT might be reclaimed by the school.

Could the school buy the building and then somehow pass it on to the nursery?

Advice on the most VAT-advantageous way of carrying out this purchase would be very helpful.

Query 18 434 – Nursey

Reply from Steve Kesby

Under VATA 1994 ...

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