- Labour government plans to remove VAT exemption for private schools from 1 January 2025
- Currently, private schools are exempt from VAT on education and boarding services
- Proposed changes will subject education services, vocational training, and boarding services to 20% VAT
- Private schools defined as those providing full-time education to pupils of compulsory school age or those under 19 where fees are payable
- Government aims to raise revenue for state education priorities by applying VAT and business rates to private school fees
- Legislation will take effect for fees paid from 29 July 2024 onwards for terms starting on or after 1 January 2025
- Schools advised to seek specialist advice on how the changes will impact fees paid before 29 July 2024
Source: icaew.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
