King William's College received £2.25m loan in 2025
King William's College told the Department for Enterprise its financial position 'remains fragile' in a letter that also outlined that the school was exploring a deal involving its assets.
The letter, and details of the school's position, have been released following Freedom of Information requests.
The letter, dated 28 May 2026, was sent by Chair of the Governors Peter Clucas to the-then Enterprise Minister Tim Johnston.
It stated that the imposition of VAT at 20 percent on fees had resulted in 'c. £1M of net operational funds being payable to the Isle of Man Government annually'.
Mr Clucas wrote that the college chose to absorb some of the cost for current pupils in the first two academic years but that, from 2026/27, the VAT would be passed on in full, with the college then providing financial support for some existing families 'to enable continuity of education for the pupils concerned'.
The letter said the board of directors 'must now take deliberate action to secure the school's long-term sustainability on the Isle of Man' and referred to 'a transaction involving the school's assets'.
It noted that a minimum of 50 percent of a loan granted by the government would be repaid from funds from the sale of the Westhill site to Hartford Homes, in January 2029, with the remainder, if unsettled, 'repayable within five years of the drawdown i.e. by early September 2030'.
It was announced in April 2025 that King William's College and The Buchan School had secured £2,256,395 through the Department for Enterprise's financial assistance scheme.
The college said it supported around 150 staff and provided 'educational choice via an on-Island independent school for attracting and retaining families on the Island'.
You can find more on that here.The Buchan School site, also known as the Westhill site, was later sold to developer Hartford Homes for a figure believed to be around £6m, paid in instalments with a final deferred payment due in January 2029.
In its FoI response, the Department for Enterprise said it was aware of the private school's financial difficulties when the assistance was approved.
It said that 'there was considered to be a credible prospect that the College could trade through those difficulties and return to a sustainable financial position'.
Separately, correspondence released by the Attorney General's Chambers showed the college's annual report and accounts for the year ended 31 August 2025 remained outstanding.
Members of the public repeatedly requested the documents with the Charities Administration confirming an extension to 31 May 2026 and later stating accounts were expected by 31 July 2026.
On 28 July 2026 the college confirmed it would not meet that deadline.
A meeting with the Charities Regulator followed on 10 August and in an email dated 18 September 2026 the college said the approach had been 'presented to the full board on the 25 August' and accepted as 'sensible and pragmatic', but governors 'were not quite in a position to sign it off that day'.
Approval was hoped for on or before 9 October, when the next full board meeting was due.
The correspondence also showed a member of the public raising concerns about repeated late filing, writing that it raised 'serious issue of governance on the part of the college which is continuing to trade'.
The Charities Administration said concerns about the administration or governance of a registered charity may be submitted in writing to the Attorney General and that it could not comment on any regulatory enquiries.
Manx Radio has contacted the administration for an update on the latest accounts submitted by the school.
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