This Clause provides for the reintroduction of Section 86(3) ICTA 1988 which ensured that a deduction was available when computing business profits for tax purposes for the costs of businesses which second staff to educational establishments. This ceased on 1 April 1997. It will be as if relief had never expired.

In addition, the descriptions of the educational establishments in Section 86(3) have been updated.

The Chancellor of the Exchequer commented when he announced the reinstatement of the relief in the Pre-Budget Report, that tax relief will encourage businesses to offer expertise and management to help schools and colleges.

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Subsection (1) provides for amendments to Section 86(3) ICTA 1988.

Subsection (2) deletes the expiry date of 1 April 1997 from Section 86(3).

Subsections (3) and (4) make changes to the definitions of the educational establishments in the original Section 86 to bring them up to date.

Subsection (5) provides that the removal of the expiry date in subsection (2) will be deemed always to have effect. It will therefore be as if the relief had never expired.

Subsection (6) provides that the changes made under subsection (3) and (4) to the definitions of educational establishments will apply for 1999-00 onwards.

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In 1983 a special provision was introduced to give relief for the costs of secondments to charities (Section 86 ICTA 1988).

Many educational establishments had charitable status and came within the scope of the new relief. But it was decided in 1987 to widen the relief to educational establishments generally. The 1987 relief was only for 10 years; the intention was to review the situation at that stage. But in the event it lapsed.