Assisted Purchase Scheme for Musical Instruments

The Assisted Instrument Purchase Scheme (AIPS) applies to pupils in full-time state education who receive musical tuition at school, or in a local authority orchestra, as part of their curriculum. It enables them to purchase new instruments through the local authority.  The supply of the instrument by the local authority to the pupil is not by way of business if the pupil is being taught to play the instrument by the school. Participation in school orchestras and Music Service Ensembles counts as tuition. In these circumstances the VAT incurred by the local authority when it purchases the instrument, can be recovered. For more idetails please go to:

http://www.hmrc.gov.uk/manuals/vatgpbmanual/vatgpb7825.htm