Tax and Training costs - can they be offset?

bazoo

My son is planning on going to flying school and this will be about £50,000 in total training fees. I was planning on giving him a bank guarentee for this amount. I'm on PAYE 40% rate.
Question - if I set up a company (training type or some other thing) , could I claim any or all of the training costs?

There is a 3 year Uni course and he could do that and have it as a student loan, but the prefered option is choosing his own school.

Richie(UK)

Hi bazoo,

You are trying to obtain the £50K training costs as an allowable trade deduction, correct?

Generally, if the training costs are incurred 'wholly and exclusively' for the purposes of a trade then they are allowable. The problem here is that the Revenue will contend that the costs are, at best, incurred to put you/your son in a position to be able to trade - this is not the same as a trade expense.

Furthermore, what are you proposing to offset the training costs against? What income will this company have? If it is not carried-on with a view to making a profit then any loss relief can be denied.

If I can think of anything more positive I'll let you know