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Gifts/donation 2nd request

Gifts/donation 2nd request

An unincorporated dancing school has installed a new studio floor, partly paid for from profits, but also from small donations, raffles etc. How do we account for the donations/fundraisers, do we need to pay tax on what seems to be non-trading income?

50 people read my original posting but no responses is there anyone out there who can help?

Christine Taylor


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By ACDWebb
06th Oct 2004 14:12

If the donations were specific for capital expenditure on the studio floor are they trading income?

Can you not identify the receipts as for specific capital items rather than for day to day running so that they do not touch P&L?.

Also, if the dance floor qualifies for CA's it would seem that the cost should not be restricted for the donations (s14 CAA)?

Just some quick thoughts for shooting down really, rather than an unequivocal reply!

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06th Oct 2004 08:02

Probably taxable
I see that no-one else has responded, so will give my opinion that I'm pretty sure that the Revenue would view this as taxable as the monies were only received because of the work that the school does.
An author client of mine received a prize which he would not have received otherwise, and which is consequently taxable.

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