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School Fees (Tax Relief)

Volume 977: debated on Monday 28 January 1980

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asked the Chancellor of the Exchequer if grandparents can obtain tax relief on contributions to schemes designed to help the payment of current or future school fees for grandchildren; and, if so, what is the statutory authority for such relief.

There are no tax reliefs specifically available to grandparents for contributions to school fees schemes for grandchildren, but most such schemes take advantage of existing income tax reliefs—for example, for life assurance premiums—or of the exemptions from capital transfer tax. Where a scheme is funded by covenanted income from someone other than the child's own parents the payer is, under the normal income tax rules relating to covenants, entitled to income tax relief at the basic rate on his payments.