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I have been asked to get involved with a local new Free School that parents are trying to set up under the government’s latest initiative. Some premises have been identified and the government inspectors are happy with the size and okay with the rent. However, the landlord has opted to tax the property, currently it is divided into several commercial units. As far as I can see the landlord will have to charge the VAT on the lease and the school will have to pay it with no ways of reclaiming it; is this correct? Can one of your UK tax experts help me with this? The school will be run by a charitable company if this offers any opportunity?

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